People in Germany are increasingly retiring earlier. This emerges from new data from the Federal Institute for Population Research. This further exacerbates the pension problem.
According to calculations by the Federal Institute for Population Research, people in Germany are increasingly retiring early. According to this, many leave the labor market at the age of 63 or 64 – well before the standard retirement age.
The institute in Wiesbaden announced that the rapid increase in the employment rate among the over 60-year-olds, which was observed at the beginning of the millennium, has largely come to a standstill in the last five years.
One reason for this is the “pension at 63”, i.e. the possibility of drawing a pension early without deductions for long-term insured persons that has existed since 2014. In 2021, almost every third person would access an old-age pension in this way.
In addition, according to the BiB, more and more people are retiring before the standard retirement age and accept deductions in the amount of their pension.
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Between 2000 and 2015, the employment rate for men aged 60 to 64 more than doubled. There was even a fourfold increase in women of the same age. According to the information, this trend was determined by people born between 1940 and 1950. Currently, however, the baby boomers born in the 1950s are retiring.
The calculations are based on the microcensus data on the development of labor force participation. The Federal Institute for Population Research did not initially give exact figures.
What is clear, however, is that early retirement and in particular the retirement of the “baby boomers” are increasing the pension problem that is prevalent in Germany. By 2040, the state coffers of some federal states will be groaning. Our graphic shows how expensive the demographic costs are for your state.
Click here for the detailed article: Graphic shows the full extent – if the baby boomers retire, it will be really expensive for the federal states
