As of: March 10, 2024, 4:48 p.m
By: Bettina Menzel
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According to the Federal Statistical Office, labor participation among 60 to 64-year-olds has increased more in recent years than in any other age group - from 47 percent in 2012 to 63 percent in 2022. © IMAGO/Ivana Kojic/Westend61
The German pension system is under pressure.
The traffic light is now improving.
One adjustment screw: Older employees should be motivated to voluntarily work longer hours.
Berlin – Society is aging and the pension system in Germany is coming under pressure: there are fewer and fewer contributors compared to more and more pensioners.
The amount of pension provision should actually fall, but almost half of all German pensioners already have a monthly net income of less than 1,250 euros.
With its new pension package, the traffic light coalition promises to keep the pension level stable at 48 percent until 2040.
Young people in particular pay for this.
If older people voluntarily worked longer hours, it could solve several problems.
Labor Minister Hubertus Heil (SPD) wants to present his plans for this in the summer.
Additional income instead of a pension: How voluntary work by pensioners could help Germany
Germany suffers from a shortage of skilled workers.
The Federal Republic needs around 1.5 million immigrants every year, explained the chairwoman of the Economics Committee, Monika Schnitzer.
The idea: If older people were to continue working voluntarily instead of retiring, there would be more hands available to the job market - plus prospective retirees with a lot of experience.
According to the Federal Statistical Office, the proportion of highly qualified people among older people, who in many cases continue to work longer, is particularly high.
The pension system would have more contributors and fewer recipients at the same time, which in turn could relieve the burden on young people.
At least the trend on the labor market is heading in the right direction: more and more people in Germany are working between the ages of 63 and 67.
The number of people in this age group subject to social security contributions and those in marginal employment rose steadily from 1.31 million in 2020 to 1.67 million last year, according to a government response to questions from the Left in the Bundestag available to the German Press Agency.
In some cases also because the pension is too low.
For around 40 percent of those in employment aged 65 and over, their activity was the main source of livelihood, while the majority earned something in addition to their pension.
But how can more seniors be motivated to do voluntary work?
Work longer instead of pension: Federal Labor Minister wants to talk about incentives - unions skeptical
Federal Labor Minister Heil wants to first talk to unions and employers about possible incentives for older employees and present corresponding proposals in the summer.
Federal Economics Minister Robert Habeck (Greens) had previously proposed more financial incentives for people who continue to work past retirement age.
The idea met with criticism from the union side.
“We oppose false demands to exempt older employees from taxes or social security contributions.
This only takes money away from social security and public budgets,” said Anja Piel, board member of the German Federation of Trade Unions, to
Welt am Sonntag
.
The employer side, however, was open to the idea.
“We welcome the fact that the federal government wants to create incentives to keep older people in companies longer,” said employer president Rainer Dulger to the
Tagesspiegel
.
Many companies suffer from a shortage of skilled workers, and this would be a way for them to alleviate this, says Dulger.
Germany's employers, the Union as well as politicians from the Greens and FDP as well as the economist Martin are also in favor of moving away from the so-called “pension at 63”.
However, Federal Labor Minister Heil rejected this.
It is a “principle of fairness” that people “who have worked for over 45 years can retire at 64 or 65 without any deductions,” said the minister
(bme/dpa).