Politicians are currently arguing primarily about retirement at 63. According to a recent Insa survey, a clear majority of citizens believe that pensions in Germany are not secure. An expert explains why this concern is justified.
In an Insa survey conducted by Bild, only 20 percent said that pensions in Germany would remain secure in the future. A clear majority of 72 percent disagreed. 38 percent of respondents even feared that the retirement age would rise to 69. And 29 percent even assumed that they would have to work until they were 70.
Michael Heuser, Scientific Director of the German Institute for Asset Formation and Pensions (DIVA), shares the concerns of those surveyed. “The contribution rate and the tax subsidy will inevitably have to rise significantly. The bill will therefore be paid by those in employment, who will then receive even less net from their gross income,” explains Heuser.
In a survey by the current German Pension Index on the financial viability of pensions, 44.3 percent of respondents said that increasing tax subsidies was a priority. 24.9 percent were in favor of increasing pension contributions. 17.7 percent would agree to a reduction in pension levels. Just 13 percent agreed with an increase in the retirement age.
“The political measures are therefore met with approval by large sections of the population. This is not really surprising, because the proportion of those who are already retired or will be retiring in the next few years is increasing rapidly. But the question arises as to whether it is forward-looking policy to expand the social security systems to the limits of financial viability,” Heuser interprets.