Last year’s pension reform represents a departure from a system geared to the pension level to one geared to the contribution rate. The government’s declared aim is to cap the pension contribution rate at a maximum 22 % up to 2030 – not least with an eye on Germany’s international competitiveness. In this context, future pension increases will take into account the ratio of the number of pensioners to the number of contributors together with earnings growth. The upshot will be a further reduction in the pension level. In some cases, future pensions could be some 15 % lower than they are today.
Germany. The Rürup-reform and its impact on pension levels
Dr. Michaela Grimm
Tel.: +49.69.2 63 – 5 18 45