The eventual inability to fund this, according to economist Veronika Grimm, is a major concern. She suggests tying the entrance age to a rising life expectancy in an effort to reduce the strain on the pension system.
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| Prof. Dr. Veronika Grimm |
Veronika Grimm, a business sage, supports automatically hiking the retirement age as life expectancy rises in the discussion concerning the future of pensions. She stated to the newspapers of the Funke media group that “the standard retirement age should be linked to life expectancy.”
The formula for the future may be as follows: If life expectancy grows by one year, two-thirds of that extra year would go towards productive employment and one-third towards retirement. According to Grimm, who is a member of the Advisory Council for the Assessment of Overall Economic Development, there should be exceptions in the event of health limitations.
Grimm lamented the rising rate of early retirements as well. The labour force participation of older adults must rise in order to address the skilled worker shortage in Germany. In order to raise the real retirement age, she stated, “we have to make sure that people want to and are able to work longer.” “We must stop the trend of early retirement.
The CDU has raised the possibility of tying retirement age to lifespan. A fresh fundamental programme is now being developed by the party.
The age restriction will be gradually increased from 65 to 67 years old without pension deductions, in accordance with the present legislative framework. The typical retirement age for anyone born in 1964 or after is 67 years old. The coalition for traffic lights has so far disallowed any more increases.
German Chancellor Olaf Scholz stated during a public discussion in Erfurt, “I am firmly convinced that we no longer need to keep raising the retirement age.” Anyone who graduates from high school at the age of 17 has a fifty-year career ahead of them. That, I believe, is enough. Someone should be allowed to work longer if they want to, “but not because they have to, but because they can.”
Danyal Bayaz, the finance minister of Baden-Württemberg, recently issued a warning that standard retirement at the age of 67 would not be viable if economic conditions stayed the same. The Green lawmaker increasingly believes that working longer hours is fair in many professions.
Source: Tagesschau