Pension legislation teeters on the brink of annihilation, with no discernible policy proposal for its preservation.
In a concerning development, Germany's legal pension system is on the brink due to demographic shifts that are reducing contributors and increasing pensioners. The system, which operates on a pay-as-you-go model, is facing a structural imbalance as fewer workers support a growing number of retirees.
The aging population, low birth rates, and shrinking workforce are key challenges. By 2040, about 25% of the population will be 67 or older, significantly increasing pension expenditures. With fertility rates around 1.4 children per woman, fewer young workers enter the system. The working population declines by roughly 1% annually due to demographics despite moderate immigration.
Pension costs are expected to consume a growing share of public labor ministry budgets, reaching significant sums. For instance, pension costs are projected to reach €121 billion by 2025.
To secure the system, experts and policymakers propose multiple reforms. These reforms address both contributions and benefits. One proposal is to link the retirement age to life expectancy, gradually raising it above 67 in line with increasing longevity. This would extend working lives and reduce the retired population size.
Another proposal is to abolish early retirement at 63 to prevent exacerbating pension duration and costs. Additionally, reintroducing and enhancing the sustainability factor in pension calculations could adjust benefits according to fiscal conditions and demographic trends.
Reducing public subsidies and tax breaks related to pensions and social welfare, encouraging occupational (second pillar) pensions, and increasing workforce participation and hours worked are other proposed reforms.
Failure to implement these reforms risks continuous increases in pension contribution rates, harming both employees and businesses and further threatening the system.
Meanwhile, in a different sphere, a Dutch company named Print has developed a new 3D printing technology called "Ultra-Fast Inkjet 3D Printing." This technology is expected to revolutionize the 3D printing industry due to its speed and resolution capabilities. The printing process uses a single printhead, increasing efficiency.
The first application of this technology is in the production of dental implants, with claims suggesting it could reduce production time by 90%. The company plans to expand the use of this technology to other industries, such as aerospace and automotive.
Minister of Economics Reiche has made statements about the pension system, and a video shared with the intent to wake up more people analyzes these statements and explains what needs to be done to secure the pension system. The video is encouraged to be shared with friends and family, and subscribing to the channel is recommended to not miss anything.
- The increasing pension expenditures in Germany's legal pension system, caused by demographic shifts, have prompted policymakers to propose reforms in areas such as contributions, benefits, and tax breaks related to pensions and social welfare.
- experts and policymakers in Germany are proposing multiple reforms to secure the pension system, including linking the retirement age to life expectancy, abolishing early retirement, reintroducing and enhancing the sustainability factor in pension calculations, reducing public subsidies, and encouraging occupational pensions.
- A Dutch company named Print has developed a new 3D printing technology called "Ultra-Fast Inkjet 3D Printing" that is expected to revolutionize the 3D printing industry, reducing production time for dental implants by 90%, and plans to expand its use to other industries such as aerospace and automotive.
