Study: pension insurance also necessary for civil servants
If these occupational groups also paid into the statutory pension insurance, a falling pension level and rising contribution rates could be prevented. This is the result of a study by the ruhr university in bochum commissioned by the bertelsmann foundation, which was published on monday. While the federal labor ministry does not think much of such a citizen’s insurance scheme, the SPD parliamentary group has submitted its own proposal.
When the baby boomers of 1955 to 1970 retire, the level of pensions in germany will fall and the contribution rate will have to rise, predicts the study’s simulation calculation. Even with higher labor productivity due to technical progress, the previous pension reforms were not sufficient to stabilize the pension system.
The main challenge for the pension fund is demographic change: the proportion of the population over 65 will double from 30 percent today to 63 percent by 2060. The contribution rate would have to rise from just under 19 percent today to 27.2 percent in order to reach a pension level of 41.2 percent in 2060 (currently around 50 percent).
Self-employed and civil servants in the statutory pension insurance system could cushion the development. According to the calculations, a contribution rate of 24.7 percent would be sufficient for a 50.8 percent pension level in 2060. Other measures, such as longer working lives, more women and older people in the workforce, and better education, have had comparatively little effect. That is why a whole bundle is recommended.
"If the statutory pension insurance system is to remain financially viable and efficient despite an aging and shrinking population, this will certainly not be possible without increasing contributions," said eric thode, the foundation’s project manager. "We have it however in the hand, from where the contributions come."
A federal labor department spokesman warned that expanding mandatory insurance would lead to "horrendous multiple burdens on individual groups that would be extremely difficult to manage". In addition, the inclusion of officials and self-employed people create new demands. "It’s going to cost a lot of money in the long run."
SPD parliamentary group believes pension system for all is in line with modern working society. But first, the focus had to be on self-employed people who have no compulsory old-age insurance at all, explained social policy spokeswoman anette kramme. Some self-employed people are covered by professional pension schemes.
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