This came up in German business news today....with the Bundesbank talking to the political parties, and suggesting that the new retirement age should be set at 69 years and 4 months (by the year 2070).
I remarked on this (leaving out the 2070 year business) and my German wife almost had a heart attack....launching into a huge tirade that this just wasn't going to be accepted.
Chief reason for the push up to this new age idea? Well, they started off talking about age expectancy and how German just live longer now. I kinda agree on longer age thing, but if you physically tested or emotionally tested Germans....living longer doesn't really mean they are still capable of the work they've been doing for 45 years.
Then they got into the pension talk, and they just kinda nicely hint....either you have to raise contributions, or raise the age business. The pension business simply isn't going to work with people reaching the new higher age situation.
Right now, the age is set at 65, with a gradual up-swing going on, and 67 will be the new norm by 2031.
Agreeable with folks? I doubt it. You have to remember that IRA or 401k type situations that operate in the US.....aren't being used in Germany. The bulk of retirees have their normal regular social security pension, with the higher wage-earners having an insurance-type account (similar in nature to an IRA). Most middle class people are simply counting on their regular pension plan to 'work' in the end.
If you threw this into a discussion....most Germans would prefer to go and retire by age 62, taking a lesser amount, and moving off to the Philippines, Thailand, or Greece....thus living a lesser lifestyle....enjoying their lives in early retirement. The government may figure out some way to just offer those people a lesser amount and keep the rest on the road to age 68.
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