The Organization for Economic Co-operation and Development (OECD) Pensions Report shows which countries pensions at age 70 will become a reality in the long term.
Frankfurt – Retirement is a hot topic in Germany. Stefan Wolf, president of the Gesamtmetall Employers’ Association, predicted at the end of July what many consider inevitable: “We will gradually have to raise the retirement age to 70 – also because lifespan continues to rise,” Wolff told Funke media group.
Residents are furious, even though retirement age of this size is no longer a dark dystopia for the future, but a reality to which some countries are already adapting, according to reports. the father.
Retirement at 70: the current German retirement age
Retirement at 70 separates the fronts. In business, he has long advocated a higher retirement age. Economists such as Alex Börsch-Supan have long advocated linking retirement to higher life expectancy. in work week He talks about correcting the retirement age by one year or more, approximately every twelve to fifteen years. However, retirement at the age of 70 will be farther than expected.
Federal Labor Minister Hubertus Hill (Social Democratic Party) however strongly rejects this idea. We have agreed in the coalition not to raise the legal retirement age. “Nothing will change in this regard,” said the Minister of Labor at Funk Media Group. Hill says Germany’s retirement age, at 67, is already at its maximum from an international perspective. However, the Minister of Labor is not quite right. The minimum age for the standard old-age pension without deductions will only be gradually raised to 67 years by 2029.
According to the pension report by the Organization for Economic Co-operation and Development, which WiWo Available, the legal entry age for Germans was 65.7 years old last year – compared to other industrialized countries in the OECD, so Germany is in the first quarter. So far, Iceland, Norway and Israel have been on top when it comes to the retirement age of 67.
Retire at 70? A slap in the tired face
Retirement at 70: In Europe, people often retire before the legal limit
Therefore, the stipulated age of entry and the actual entry into the pension often differ from each other. According to an OECD study, Japanese are the most recent to retire at the age of 68.2 years. Legally and without deductions, this will already be possible at the age of 65.
Rather, the opposite is true in Europe. People often leave the labor market before they reach the legal retirement age. According to the Organization for Economic Co-operation and Development, men and women retire in France about three years earlier, on average. The legal retirement age there is 63.5 years. At the age of 63.1, German employees also retire earlier than required by law. You can find out how early retirement without deductions works here.
Retirement: In these states, the future retirement age is already over 70
While in Germany, retirement at the age of seventy was largely met with anger and resentment, other countries have already accepted their fate. A look at OECD statistics reveals that almost all member countries expect an increase in the retirement age in the future. This is particularly the case in Turkey. In the future, men will only be able to retire without deductions after 13 years. Currently, the Turkish retirement age is 52 years. This may sound relatively low, but people in Turkey are the hardest working workers in Europe with around 48.3 hours per week.
|Source: Organization for Economic Co-operation and Development (OECD)|
* Future retirement age: Applies to people who entered the labor market in 2020 at the age of 22
In Estonia or Italy, the retirement age will be 71 in the future. For Italy, this means raising the minimum age to nine years. According to the Organization for Economic Co-operation and Development, Denmark increases by 8.5 years and only allows a pension without deductions from the age of 74 in the long term.
Retirement at age 70: responding to demographic change
The future retirement age will not come into force suddenly, but will apply to people who entered the labor market in 2020 at the age of 22. But the pension system is unbalanced: the number of workers who have to fund more and more retirees is decreasing.
The demographic structures presented in the OECD Pension Report do indeed predict the problems of aging societies. By 2060, the working-age population will decline by about ten percent, on average, across OECD countries. In countries such as Greece, Japan, Korea, Latvia, Lithuania and Poland even by 35 percent or more. Similar to Germany, these countries must also ask themselves how they will close this widening gap in the labor market in the future. In Germany, pension solutions are already being considered. But the answer so far is probably a longer working life. (aa)