As of: February 20, 2024, 2:18 p.m
By: Lars-Eric Nievelstein
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The number of working people between the ages of 63 and 67 is increasing.
According to the Left Party, this should not happen because the pension is too low.
A request to the federal government revealed the details.
Berlin – The discussion about a higher retirement age is not slowing down.
Economists believe it is necessary to ensure that the pension system in Germany does not collapse. Increasing the retirement age is part of the basic program of the CDU and CSU, and Labor Minister Hubertus Heil (SPD) firmly rejects at least pensions from the age of 69.
The retirement age has already increased - albeit through the back door.
Number of employees subject to social insurance contributions between 63 and 67 |
1.67 million (federal government) |
|---|---|
Increasing the retirement age by 2029 |
65 |
Labor force participation between 60 and 64 |
63 percent (Destatis 2022) |
Pension supplement if you continue to work after retirement age |
0.5 percent per month |
More and more Germans continue to work after retirement age
This is reflected in the increasing employment of pensioners.
More and more Germans are also working between the ages of 63 and 67.
Between 2020 and 2023, the number of people in this age group subject to social security contributions and those in marginal employment rose from 1.31 million to around 1.67 million.
The federal government announced this in response to a request from the Left Party in the Bundestag, which was available to the
dpa
news agency .
Matthias Birkwald (left) in the Bundestag.
In response to his inquiry, the government announced that more and more Germans are continuing to work instead of retiring.
© IMAGO / dts news agency
Matthias W. Birkwald, a pension expert for the Left Party and responsible for the request, then spoke out against the abolition of the “pension at 63”.
This generally means a pension without deductions after 45 years of insurance, since people who were born before 1953 were allowed to retire at the age of 63 without deductions.
The current age limit is 64 years and four months - for everyone born before 1960.
Younger people will have to prepare for an increase in the retirement age to 65 by 2029.
Union speaks out against pensions from the age of 63
In contrast, for example, Germany's employers, the Union and various politicians from the Greens and FDP.
Winfried Kretschmann, Prime Minister of Baden-Württemberg, said in September: “We cannot afford for mainly healthy and well-earning people to retire at 63.” And Federal Finance Minister Christian Lindner (FDP) suggested incentives in an interview so that people want to work longer.
He viewed the pension at 63 as a “retirement bonus for qualified employees”.
The Union wants to subject the pension to a fundamental reform in order to keep it affordable.
According to a draft, “there is much to suggest that the working lifespan of those who can work must increase and that the standard retirement age should therefore be linked to life expectancy”.
For every year of increased life expectancy, four months more work is said to delay retirement.
In an international comparison, Germany is already a “late bloomer” when it comes to pensions.
Retirement age is already rising – passively
As the Federal Statistical Office (Destatis) revealed, the labor force participation of Germans who had actually already reached retirement age had increased excessively in recent years.
In the 60 to 64 age group, their share rose from 47 percent (2012) to 63 percent (2022).
The proportion of employed people aged 65 to 69 also increased - from eleven percent in 2012 to 19 percent in 2022.
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“You constantly hear calls about raising the standard retirement age, abolishing the 'pension from 63' or a 'flexible retirement',” complained Birkwald.
Employment in old age would increase even without such interventions.
Instead of politics, he sees employers as having a duty to offer employees good work.
They would therefore be more likely to take advantage of the opportunity to work longer voluntarily.
Working beyond retirement age improves your pension
Employees who continue to work after reaching regular retirement age can increase their future pension.
According to the German Pension Insurance, every additional contribution payment results in a surcharge on the pension.
To do this, pensioners must inform their employer that contributions to the pension insurance should be made from their salary.
An increased pension payment will then be made from July of the following year.
The principle is: Employees receive a surcharge of 0.5 percent on their pension every month between reaching the regular retirement age and the start of the higher pension.
Anyone who delays their retirement by one year will receive six percent more.
In addition, the pension increases by the contributions that continue to be paid.
With material from dpa