A prominent German economic advisor has voiced support for a proposal gaining traction within the government – the need for citizens to work longer to ensure the long-term stability of the national pension system.
Veronika Grimm, a member of the German Council of Economic Experts, emphasized the importance of incentivizing delayed retirement in comments published by the Funke Media Group. She argued that adjustments to the statutory retirement age should reflect increasing life expectancy, strengthening the pension insurance fund without necessarily mandating a retirement age of 70.
Professor Grimm also suggested a shift in how existing pensions are adjusted, advocating for indexing to inflation rather than wage growth. She cautioned against relying on specific solutions that may prove ineffective. Increased immigration, she argued, does not automatically bolster the pension system, as newcomers also accrue entitlement to benefits. Similarly, integrating public sector employees into the general pension scheme would not fully resolve the challenges. She expressed concern that focusing on superficial fixes could divert qualified personnel within government ministries from addressing the core issues with substantive strategies.