New study shows how long employees in Germany will work, based on the year 2024, just to pay the social security contributions imposed by the state. Younger generations in particular are doing poorly, a new study shows.
“An ever larger part of the burden is being passed on to the younger generations, which undermines intergenerational equity, a central foundation of our welfare state,” says economist Prof. Dr. Bernd Raffelhüschen from the University of Freiburg.. Social security contributions and salaries are not balanced for all employees. Those who are now between 15 and 20 years old have the worst balance between investments in the welfare state and benefits received from it on average, according to the study. In today's terms, taxpayers over the age of 36 would contribute more to the welfare. state system over the rest of their lives than they actually receive in non-contributory social benefits, the study says. The social security burden rate of around 25.9 percent corresponds to a quarter of the average total annual income.