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Senior at a market in Düsseldorf: Longer contribution phases reduce the pressure
Photo: Michael Gstettenbauer / IMAGO
The Bundesbank believes that linking the retirement age to life expectancy could stabilize the statutory pension system in the long term.
In many countries of the European Union, the retirement age is now increasing with life expectancy, according to the Bundesbank in its monthly report for June, which was published on Monday.
"It's not just the period of drawing a pension that's lengthening, it's also the period of contributions." This noticeably reduces the pressure of constantly having to adjust other variables, such as the contribution rate and the tax-financed funds of the federal government for the pension fund, according to the central bank's economists.
"The coupling noticeably reduces the pressure on the contribution rate and the federal budget."
The SPD, the Greens and the FDP have set themselves the goal of permanently securing the minimum pension level – i.e. the ratio of the pension to the average wage – of 48 percent.
The traffic light partners ruled out pension cuts or an increase in the retirement age.
Instead, they promised to save new capital for the pension fund: as a permanent fund, professionally managed and invested globally.
The age limit for drawing the statutory pension has been gradually raised from 65 in 2012 to 67 in 2031.
In 2019, the Bundesbank fueled the debate about further raising the retirement age to almost 70 years.
In its current monthly report, the Bundesbank confirms: »The simulations up to 2070 show that the pressure on pension finances will ease noticeably if the retirement age continues to increase gradually after 2031.
It is true that the contribution rate and federal funds are still increasing significantly.
In the long term, however, they increase less than if the retirement age remains the same.«
In general, the Bundesbank advises the federal government to be as transparent as possible about what a certain level of pension costs people in old age: “Despite all the estimation uncertainty, there is a lot to be said for taking a much longer period as a basis than in the current pension insurance reports.
Because the calculations should also offer orientation for those who are currently at the beginning of their working life.«
mike/dpa
