On 22 May, the Danish Parliament passed the law, increasing the age of retirement. The law, approved by 81 MPs with 21 voting, determines the retirement age at 70 for all citizens born after 31 December 1970. Currently, the retirement age in Denmark is 67. By 2030, it will increase from 68 and 2035 to 69.
Last year, 47 -year -old Social Democratic Prime Minister Mette Frederricasen said that after reaching 70 official retirement age, it would be open to review the system.
The show of international comparison is just regulated the age of different retirement. In some countries, people continue to work longer than being legally necessary.
Will Germany follow Denmark’s leadership?
The new government of Germany is still trying to find out how to deal with the country’s struggling statutory pension system.
Recently, at a party conference in the ruling Christian Democratic Union (CDU) in Stutgart, the new chainzeller of Germany, Frederick Mars, praised Himall and his social democratic coalition partner for “Write many good things in the coalition agreement – how to pension for pension for pension for pension.
At least, Merz warned that “the way things are today can be for a few more years.”
For a former Government Economic Advisor, Burn Rafalehschen, Danish improvement effort is worth imitating.
The economist said, “We should increase the retirement age quickly to 70 so that we can still catch the minimum part of the baby boomer generation,” Ogsburg general Recently, the newspaper, referring to a strong group of people born in the late 1950s and early 60s, who are currently retiring in large numbers.
Raffelhüschen said that because a million Germans are leaving the workforce until 2035 every year, it will push the pension contribution for younger generations more.
Bearridge vs. Bismarck
Pension financing in Europe follows two main models in the name of his founders: the Bismarck model, which was introduced by German Chanman Chanman Chanman Chanman Chanman Chanman Chanman Chanman Chanman Chanman Chanman in the 19th century, and was based on the Bearridge model developed in the 1940s.
The Bearridge System is a welfare model that provides universal coverage and is tax-installed. It was designed by British economist William Henry Beverridge, a member of the UK Liberals’ parliamentary faction.
On the other hand, the Bismarck model is on the insurance-based system in which both workers and employers pay in a fund. In simplified terms, it is a so-called pay-e-bo-Go system where the working population funds the pension of retired people through their contribution.
This is why it is difficult to compare pension systems throughout Europe – even more country’s countries use hybrid models use aspects of both. The nuances, often complicated, vary widely among nations.
Development of demographics, and prolonged working – or less
Germany’s Bismarck-based system is growing rapidly due to demographic changes. As the age and workforce of the population shrink, there are more retired and fewer people to find social insurance schemes.
At the same time, people have been living for a long time due to growing life expectancy, which means they draw pension for more years.
This puts growing pressure on the pay-e-u-Go pension funds, with the results that the contribution of the ether should continue to grow, or the pension benefits may be stable, failed to maintain with inflation. Alternatively, the overall pension level may have to be demolished.
Of course, a small working life and earlier retirement is appealing to most people because they can leave work before the decline in their physical abilities and use the last third of their life for meaningful activities or for more time with family.
Therefore, there are economic benefits, because more leisure time creates more opportunities to spend money, thus consumer stimulates demand and comprehensive economy.
But working for a long time can be many. Many people feel well and are well in their 60s so that they can continue working, pass on their knowledge, and give the value of interaction with young colleagues.
Employer experiences are benefited by maintaining employees and established routines, which can help reduce efficient laboratories deficiency in Germany.
Retiring a personal decision
Looking at international data shows that the age of legal retirement rarely align with whey, which actually stops working. In most cases, people first become retired because their bodies cannot live in burnout, or creative professionals.
In some countries such as New Zealand, Japan, Sweden or Greece, people often work beyond official retirement age. Whether they voluntarily do this. The reasons are often very individual to occupy by data.
The ratio of pension benefits for the so-called gross replacement rate-final salary plays a major role in people’s decisions. If that difference is very wide, some workers cannot retire.
The risk of old age poverty may be reduced if the penum was sufficient to provide financial security after a long career. But this will require funds that the pension system currently lacks. On the other hand, increasing the level of contribution will limit the ability of workers to save private eli for much more retirement.
This article was original in German.
