As retirement age approaches, the question of how long one should actually work comes to the fore for many. New data show clear trends.
More and more people are also working after the age of 60 – and when they retire, more and more of them can show long periods of insurance. This is shown by new data that the pension insurance company pointed out, as well as reports that the federal cabinet approved on .
According to a report on retirement age, the employment rate among 60 to 64 year olds rose from 20 to around 61 percent between 2000 and 2021. This size shows how high the proportion of people is who are still in the job. From 2000 to 2021, the number of employees aged 60 to 64 subject to social security contributions rose by almost 2.2 million to 2.8 million.
In addition, there are more and more people for whom contributions have flowed into the pension fund for decades. The proportion of new pensioners with 35 years of insurance or more has risen from 59 percent in 2001 to 73 percent in 2021. “The main reason for this development is the increasing number of women in work in West Germany and the associated payment of contributions to pension insurance,” said the chairman of the federal representative assembly, Jens Dirk Wohlfeil, of the German Press Agency in Berlin.
This also leads to better old-age security for these women through the statutory pension. Since 2001, women in the old federal states have increased from 27 to 61 percent among new pensioners who have at least 35 years of insurance. Around 35 years of insurance are necessary to be able to receive an old-age pension at the age of 63 for long-term insured persons. Wohlfeil spoke on the occasion of a federal representative meeting in Berlin. This is a self-governing body of the pension insurance.
The pension fund is in good financial shape
Financially, the pension fund is in good shape, as was announced a few weeks ago. According to the 2022 pension insurance report, the reserve (sustainability reserve) will probably increase to EUR 41.7 billion at the end of the year – EUR 2.7 billion more than in the previous year. The contribution rate is expected to remain stable at 18.6 percent until 2026. The security level before taxes will remain just above 48 percent until 2024.
The “Fourth Report on Raising the Standard Age Limit to 67” points out that developments on the labor market have recently been particularly influenced by the COVID-19 pandemic. However, according to the report, long-term negative effects on the labor market could largely be avoided by using short-time work. Many older employees would also have benefited from this.
The reports on pensions were dealt with in the cabinet because the legislature intended it to be so.
Source: Stern
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