Bundesbank warning: “Germans retire at 69 years or accounts at risk” – The Republic

MILAN – The Germany as Italy: not a reform of the pension system that lengthen working lives, Berlin may not be able to make ends meet accounts. The warning comes from advocates of austerity closed within the Bundesbank, the German central bank, which has asked the government of Angela Merkel to raise the retirement age from 67 to 69 years by 2030. Further adaptations to the pension system in addition to those already decided “are inevitable,” it said in a monthly bulletin issued by the Buba in a study that analyzes, for the first time, the likely trend of the German pension system in 2060.

“a longer working life – write German economists – it should not be a taboo but it must, indeed, be considered as a fundamental element “to ensure sustainability of the system and the replacement rate. A problem that closely resembles Italian where – however – the latest reforms for securing accounts have created dangerous paradoxes like that dell’operaia that is likely to work up to 74 years.

The German Government – through spokesman Steffen Seibert – immediately “confirmed the retirement age to 67″ with phased implementation while the vice-president of the Union parliamentary group of center-right, Michael Fuchs (cDU), said that an increase in retirement age is “necessary and inevitable” and that recent provisions that allowed retirement at 63 years, with penalties, have been a huge mistake.

its monthly bulletin, the Bundesbank points out that the excellent state of financial health at the time recorded by the German pension funds should not delude ourselves that, however, further reforms are needed. For this reason, economists Buba envisage an increase in retirement age to 69 years in the period 2030-2060 in order to stabilize the period of enjoyment of pension is also in the light of the increase in life expectancy.

Shortly after 2030, he recalls the study, will retire Germans born in the years of the “baby-boom” resulting in a net increase of expenses for speakers. But the raising of the age pension would be only one of the possible compensation for the adverse demographic trends: even with a shift to 69 years, the system should still decide to increase the contribution to 24% from 18.7%, and accept a decline in the replacement rate that, at the time, for the average retiree is 48% of the average salary. According to calculations of the German central bank, the rate will drop to 44% by 2060 and to 42% if you do not raise the retirement age to 69 years.

At the same time the Bundesbank warns about the effects of increased too consisting of the contribution rate which could “become an excessive burden on the working population and, together with other taxes and charges, pose a risk to growth in Germany.”

Topics:

pension

Bundesbank

buba

germany

Starring:

Angela Merkel