German Bundesbank recommends raising retirement age to 69
Imagine working until at least the age of 69 – that’s what the experts at the Bundesbank in Germany are recommending. They argue that such a change is necessary; otherwise pension payments will fall too low in the face of rising life expectancies.
Demographic change puts pressure on German pension system
Discussing the prospect of a future reform of the pension system in Germany, the Bundesbank has proposed a long-term increase in the retirement age to 69 years and four months by 2070. This is to prevent the so-called “pension level” (Rentenniveau – the ratio between the standard pension benefit and the average salary) from falling too low in the future.
The Bundesbank justified its proposal by pointing to the expected increase in life expectancy in Germany. “Due to demographic development, pay-as-you-go statutory pension insurance will come under considerable pressure in the future, especially from the mid-2020s,” the bank notes in its monthly report for October.
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