I asume you are not German, because it’s common knowledge that the pension system is vulnerable since it’s conception in the 1950, and that it will become unsustainible in it’s current form since the introduction of working contraception.
After WWII there was no capital to pay pensions whatsoever. To be able to pay pensions, the pension system was based upon a fictitional “generational contract” - people pay pensions to the older generation, and acquire the right to get pensions from the next generation. This “contract” only works if there is a next generation of about the same size as the previous. Since the introduction of working contraception, the system is broken.
This isn’t really anything special about germany btw, the very concept of retirement depends upon this - even when it’s entirely private retirement funds. The difference with those is mainly that instead of everyone not getting shit, a lot of people just don’t get to retire at all so the ones that were able to save up money can. Which is almost what we have now anyway, except all retirees at least get some small amount. Money in your account is only worth something as long as someone else is willing to work for that money, and that will always depend on the size of the workforce. It’s not a germany problem, it’s not even a capitalism problem (just the inequality created by it is).
Later retirement age is the one thing I’m not vehemently against, in part because it seems inevitable, in part also because medical science advancing makes it more feasible (and also increases the time people have after retirement).
Yes, but that is nothing that a later retirement age, a requirement for pensioners to draw on own personal wealth if it exists, and immigrant employees couldn’t alleviate.
I asume you are not German, because it’s common knowledge that the pension system is vulnerable since it’s conception in the 1950, and that it will become unsustainible in it’s current form since the introduction of working contraception.
After WWII there was no capital to pay pensions whatsoever. To be able to pay pensions, the pension system was based upon a fictitional “generational contract” - people pay pensions to the older generation, and acquire the right to get pensions from the next generation. This “contract” only works if there is a next generation of about the same size as the previous. Since the introduction of working contraception, the system is broken.
This isn’t really anything special about germany btw, the very concept of retirement depends upon this - even when it’s entirely private retirement funds. The difference with those is mainly that instead of everyone not getting shit, a lot of people just don’t get to retire at all so the ones that were able to save up money can. Which is almost what we have now anyway, except all retirees at least get some small amount. Money in your account is only worth something as long as someone else is willing to work for that money, and that will always depend on the size of the workforce. It’s not a germany problem, it’s not even a capitalism problem (just the inequality created by it is).
Later retirement age is the one thing I’m not vehemently against, in part because it seems inevitable, in part also because medical science advancing makes it more feasible (and also increases the time people have after retirement).
Yes, but that is nothing that a later retirement age, a requirement for pensioners to draw on own personal wealth if it exists, and immigrant employees couldn’t alleviate.
Well, if you mean later retirement age to be higher than life expectancy by at least a decade, maybe