But leaving early is much more attractive than working beyond the standard retirement age.
(Foto: imago stock&people)
Berlin Retirement at 69 is a recurring specter. Shortly before the turn of the year, it caused excitement again. It will be another nine years before the retirement age of 67 is reached. At the moment, debates about a further increase bring little more than a brief rush of adrenaline.
It would be more worthwhile to look at the actual retirement age. It has remained around 64 for years and has even fallen again recently, although the statutory retirement age is gradually being raised to 67. Chancellor Scholz and Minister for Social Affairs Heil are now also concerned about this development because Germany cannot afford it given the rampant shortage of skilled workers.
It is true that retirement in Germany is no longer dependent on rigid age limits because previous federal governments have made pension law more flexible. However, this flexibility is still interpreted very one-sidedly – also because of the deduction-free pension from 63: For the majority of employees, leaving work earlier is much more attractive than working beyond the standard retirement age – even if this improves their own pension leaves.
With the complete abolition of the additional earnings limits this year, the incentive to claim an old-age pension early is likely to increase again. Because even if the early retirement should be associated with deductions, these can be compensated for by the additional income opportunities.
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The traffic light also wants to motivate older people to continue working while receiving their pension. However, should the early retirees opt for a mini-job that is not subject to social security contributions, then this strategy of securing skilled workers will be at the expense of the social security funds. And early retirement increases the pressure on the contributors who have to finance the early retirement benefits.
>> Read here: Deductions for early retirees are calculated too low – at the expense of the contributors
This year, the traffic light coalition wants to implement one of its most important pension policy goals from the coalition agreement – the stabilization of the pension level at 48 percent. If she does not want to significantly increase pension contributions or spend additional billions in taxes, the number of contributors must not fall any further. Every early retiree runs counter to this goal.
The earlier the older generations say goodbye to the intergenerational contract, the greater the pressure on the younger ones. For them, retirement at 69 could no longer be a ghost at some point – but bitter reality.
More: The chief economist: Politicians revolve around the level of pensions – they have to think in a different direction