Due to the aging society, there are repeated fears that contributions will rise sharply and that the pension funds will be overburdened. However, the government and experts do not see the danger at least for the next few years.
Federal Minister of Labor Hubertus Heil has assured that the contribution rate in the statutory pension insurance will not skyrocket even after the expiry of the upper limit that will apply until 2025. “The rate will only increase slightly in the second half of the 2020s,” said the SPD politician to the editorial network Germany (RND). “My goal is to prevent an excessive increase afterwards,” Heil continued.
There are currently five million more employees subject to social security contributions than forecast ten years ago, which means that the contribution rate can be kept at the previous level for longer than expected. “I want to stabilize the statutory pension in the long term so that people can continue to rely on good old-age provision in the future,” said the minister.
The pension contribution rate has been stable at 18.6 percent since 2018. An upper limit of a maximum of 20 percent still applies until 2025, but this is not to be continued.
German pension insurance: No reason for alarmism
The President of the German Pension Insurance Association, Gundula Roßbach, also sees no reason for alarmism. In the “Interview of the Week” by Bayerischer Rundfunk and in the “Münchner Merkur” she pointed out that life expectancy is increasing more slowly than expected. In addition, the labor market is robust. More and more people are making voluntary contributions, Roßbach told the newspaper.
In addition, women are more likely to be employed. In addition, immigration is likely to be higher than expected. In the long term, she expects an average of 250,000 people per year to be able to pay into the pension insurance system. “At the moment we are in a good financial position,” said the President.
Source: Stern
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