Politicians are currently primarily arguing about pensions at 63. According to a latest Insa survey, a clear majority of citizens are of the opinion that pensions in Germany are not secure. An expert explains why the concern is justified.
Only 20 percent said in an Insa survey by “Bild” that their pension in Germany would continue to be secure in the future. However, a clear majority of 72 percent had a different opinion. 38 percent of those surveyed even fear that the retirement age will increase to 69. And 29 percent even assume that they will have to work until the age of 70.
Michael Heuser, Scientific Director of the German Institute for Wealth Creation and Old Age Security (DIVA), shares the concerns of those surveyed. “Because the contribution rate and the tax subsidy will inevitably have to increase significantly. The bill is paid by the employed, who then receive even less net of the gross,” explains Heuser.
In a survey conducted by the current German Retirement Provision Index about the affordability of pensions, 44.3 percent of respondents prioritized increasing the tax subsidy. 24.9 percent support increasing pension contributions. 17.7 percent would agree to a reduction in pension levels. Just 13 percent agree with increasing the retirement age.
“The political measures are met with approval by large parts of the population. That’s not really surprising. The proportion of those who are already retiring or will be retiring in the next few years is increasing sharply. But the question arises as to whether it is forward-looking policy if the social security systems are expanded to the limits of financial viability,” interprets Heuser.