Retirement from 70?

Expert calls proposal "gross nonsense"

Created: 05/29/2022, 15:00

By: Judith Brown

Economists in Germany are calling for the retirement age to be raised to 70.

However, an expert thinks nothing of it.

Munich – In order to counteract rising inflation, economists are currently in favor of a tough demand: In their opinion, the retirement age should be raised to 70 years.

“The retirement age must rise.

Germany already has a huge problem with skilled workers, hundreds of thousands of jobs are unfilled,” is the assessment of Prof. Gunther Schnabl, head of the Institute for Economic Policy at the University of Leipzig.

However, the economist Prof. Axel Börsch-Supan does not believe in this demand.

Retirement from 70?

Expert considers the proposal to be "gross nonsense"

Retirement from 70?

An expert thinks his colleagues' suggestion is nonsense.

(Iconic image) © Simona Piolla/IMAGO

"Retirement at 70 is gross nonsense - and it's important to tell people that," explains Börsch-Supan to the "WirtschaftsWoche".

The focus should be that we still have eight years to reach retirement age at 67.

In 2030, the adjustment of the retirement age to 67 years will be completed.

Previously it was 65 years.

However, since the pension reform of 2012, it has been gradually raised from 65 to 67 for both men and women.

"You have to make an effort to ensure that people stay healthy and can work well up to this age," says the scientist.

With regard to the increase in the retirement age, some scientists argue with an aging society – according to the motto: “Those who live longer can also work longer.” Börsch-Supan also continues to advocate linking retirement to increasing life expectancy.

"Of course that still applies, because you can't say the other way around: 'We're all living longer, but we can't work longer for health reasons,'" he told the business magazine.

Nevertheless, one should not suddenly, but “only very slowly to a later retirement age – and only if life expectancy increases.” However, it is currently stagnating because of the corona pandemic.

According to forecasts, however, this will change again.

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Adjusting the retirement age: Expert suggests splitting up longer lifetimes

But even then, the economist suggests “that people should only work longer for part of their longer lifetime and be allowed to retire longer for the other part”.

According to forecasts by the Federal Statistical Office, the retirement age would have to be adjusted by one year every twelve to 15 years.

“It would be a long time to retire at 70.

It is therefore wrong to put them in the foreground,” says Börsch-Supan.

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In his opinion, a longer lifetime should therefore be divided according to the current relationship between work and pension.

“Currently, people are about 40 years in work and about 20 years in retirement” – which corresponds to a ratio of 2:1.

According to the expert, the following breakdown would make sense in order to finance the additional retirement period: "Live longer per year, four months longer pension and eight months longer work".

This would keep the pension system stable and nothing would be taken away from anyone.

"Because people would definitely be in retirement for longer, so they gain."

This article only contains general information on the respective health topic and is therefore not intended for self-diagnosis, treatment or medication.

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