German pension system ranked 25th best in the world
The latest Global Pension Index ranks Germany's pension system 25th globally. Pension systems in the Netherlands, Denmark and Iceland took the top spots.
The Global Pension Index has ranked Germany's pension system 25th out of 55 evaluated systems worldwide. The Netherlands, Denmark, and Iceland topped the list, while Singapore, Israel, and Australia rounded out the top six with A grades. Germany's pension system received a B grade, which acknowledges a decent minimum support for the lowest-income retirees and a good net replacement rate.
However, the system is struggling due to an imbalance caused by a decreasing birth rate and increased life expectancy. In 1992, one working-age person funded pension payments for two retirees; in 2022, this burden was shared by just 2.0 people, and by 2030, it will be just 1.5 people. The German government plans to implement a 33-point pension reform to address these issues, which includes adjusting the retirement age to life expectancy, scrapping early retirement, investing pensions in capital markets, and requiring freelancers to contribute to the statutory pension. The reform aims to take effect on January 1, 2027.
Written by urgent.news from IamExpat Germany (All Germany News)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
