Employers for longer working life debate | free press

Will the pension system survive if those born in the 1960s retire? Employers in Germany suggest more incentives for extending working hours.

Berlin (dpa) – German employers have called for a debate on extending working life in Germany.

The pension system will not last in its current form, said employers’ chairman Rainer Dulger of the German news agency in Berlin. “Our current financing of old age provision actually looks old.”

The problem is that the relationship between beneficiaries and contributors spirals out of control as the cohorts born in the 1960s retire. “The federal government should fill the loophole with tax revenues, but that’s not a sustainable solution,” Dulger said. “One thing is clear: we cannot ignore a discussion about longer working lives.”

Politicians must be honest when it comes to pensions, says Dulger. “We need a retirement policy that seems longer than the next election date.” Making retirement grandchildren is a matter of intergenerational equality, Dulger said. “Because I want my children to also receive an adequate pension.” All social security contributions require a longer-term forecast and regular reporting. Thus, the topic should be widely discussed in society.

Many people are happy to work beyond the official retirement age. “We should give more incentives to work longer within the framework that exists today,” Dulger said. “For example, it makes little sense to pay someone who has decided to continue working longer to unemployment benefits, because he can no longer become unemployed.” If these premiums were waived for those affected or the money used for private retirement provision, that would be a real incentive, Dulger said.

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