Pension insurance corrects its negative forecasts

Pension insurance corrects its negative forecasts

Retirement at 70 would not please the Germans at all. An expert opinion from the pensions service now gives reason to hope. Contrary to what was feared, the demographics are evolving more favorably. The fund’s finances also look better than expected.

Despite the increase in the average age in the country, the Deutsche Rentenversicherung (DRV) has raised the alarm on pension financing. “In the coming years, the demographic burden will increase significantly less than previously expected,” DRV President Gundula Roßbach told the “Bild” newspaper. In this context, the newspaper cites new demographic forecasts from the Federal Statistical Office, according to which the share of elderly people in the population will increase less significantly in the coming years than previously thought.

Today, there are 34.8 people over 65 for every 100 people aged 20 to 65. By 2060, this figure is expected to increase to 44.7 elderly people. However, previous calculations predicted an increase to 55 seniors.

According to the “Bild”, the pension finance situation is also much more favorable than had been expected in recent years. In the 15-year forecast of the 2009 pension insurance report, the federal government predicted a contribution of 20.6 percent for 2023. In reality, the contribution has already been at 18.6 percent for seven years and this is expected to remain this way until 2027 inclusive.

“Pension finances more favorable than expected”

“We have managed to keep the contribution rate stable over a long period, contrary to expectations,” said Roßbach. The “Bild” also cites an expert opinion from the social council of the federal government, according to which the development of pension finances is also “more favorable in the long term than was assumed in previous years”. The pension fund is currently “financially strong”.

In times of increasing life expectancy, this expertise could provide some relief: for many Germans, the debate over increasing the retirement age is a source of concern. According to a survey, most workers in Germany are opposed to later retirement. A good two thirds of them would prefer to contribute more to the pension fund. Among 18-39 year olds, 70% would even prefer to contribute more, according to the survey carried out in February on behalf of the Confederation of German Trade Unions (DGB).

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Source: www.ntv.de