Germany’s pension commission has recommended a fundamental overhaul of the statutory pension system. In the future, a portion of contributions should not only flow directly to current pensioners but also be invested in the capital market. This includes the introduction of a mandatory capital-funded component in the statutory pension insurance.
Additionally, the commission proposes gradually linking the retirement age to rising life expectancy and phasing out the deduction-free pension at 63 for those with particularly long insurance records. According to its analysis, this rule is primarily used by people with stable employment histories—that is, higher earners, healthier employees, and men.
The commission is orienting itself on the Swedish model, which is considered successful. According to calculations, around 30 to 35 billion euros would flow annually into a capital stock, whose returns are intended to support the statutory pension.
Source: www.zeit.de
