Saskia Esken, the leader of the SPD, emphasized on Caren Miosga's last show that pensions in Germany are secure and remain affordable. Not even the audience believed this, which was revealed by loud laughter. "With the SPD, there will be no increase in the retirement age," she said.
But how realistic is this assurance given the current demographic and economic developments in Germany?
More honesty about pensions
The German population is ageing rapidly. Fewer and fewer people in employment have to finance the pensions for a growing number of pensioners. This imbalance is causing the pay-as-you-go system of statutory pension insurance to falter. Economists such as Joachim Ragnitz from the ifo Institute warn: "You can't have it both ways." He calls for more honesty in the pension debate and emphasizes that a high pension level and low contributions cannot be achieved at the same time.
The reality already shows the consequences of this dilemma. Almost half of all German pensioners have a monthly net income of less than €1,250. Low earners and people with interrupted employment histories are particularly affected. However, politicians seem to be shying away from necessary reforms. Proposals to raise the retirement age or link it to life expectancy are often dismissed as anti-social. But without such measures, there is a risk of further worsening poverty in old age.
