Aug 08, 2025
Published report on reform options for the pension system
The pension system in Germany urgently needs to be reformed. Otherwise, costs will continue to rise unchecked and the burden on future generations will become unreasonable. Without reforms, the contribution rate in the statutory pension insurance system threatens to rise from 18.6% to 22% by 2050. According to calculations, federal subsidies would increase by over 50% if politicians do not take decisive countermeasures.
A recently published report by the Friedrich Naumann Foundation outlines several options for action. Abolishing the pension from the age of 63 would only bring a small amount of relief, but would at least reduce the increase in expenditure. If the increase in pensions were more closely aligned with the ratio of pension recipients to contributors (sustainability factor), pension expenditure could even be reduced. Linking the retirement age to life expectancy would have a very strong effect. Adjusting existing pensions in line with inflation would also provide lasting relief for the pension system.
To the publication:
Reformoptionen für eine stabile Rente: Gutachten im Auftrag der Friedrich-Naumann-Stiftung für die Freiheit Vorgelegt vom ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München e. V., Niederlassung Dresden
von Prof. Dr. Marcel Thum, Prof. Dr. Martin Werding, Prof. Dr. Joachim Ragnitz, Grega Ferenc, Klara Lehmann
The study can be read here: https://lnkd.in/d6ya7Wsr