Bundesbank President requires later begin of retirement – ​​and linking it to life expectancy | EUROtoday

In view of the weak economic system in Germany, Bundesbank President Joachim Nagel is in favor of a later pension. In view of the scarcity of expert employees, politicians ought to “remove incentives for early retirement and also consider a gradually higher retirement age from 2031 by linking this to life expectancy,” mentioned Nagel in a speech in Dortmund.

“A man who retired at 65 in 1974 still had, on average, almost twelve and a half years to go. Anyone who retires today at the age of 66 still has, on average, almost 17.5 years ahead of them,” mentioned Nagel, in line with the textual content of the speech. “He can also assume that he will be able to spend most of the additional years of life in better health.” If life expectancy continues to extend, “then it seems to me quite justifiable if some of the additional years of life are spent in work.”

What occurs subsequent with the weak economic system in Germany isn’t just a query of the economic system, emphasised Nagel. The present weak progress additionally has structural causes reminiscent of elevated power costs within the wake of the Ukraine conflict, excessive prices of changing to a CO₂-neutral economic system, demographic change and growing isolation within the international economic system

In order to enhance the situation circumstances in Germany, Nagel proposed a package deal of measures. In the combat towards the scarcity of expert employees, people who find themselves solely capable of work to a restricted extent attributable to caring for kin needs to be given extra work. “With better, expanded care options for children and relatives in need of care, these people could be enabled to work more, if they wish,” mentioned Nagel. Germany additionally must grow to be extra engaging for international expert employees.

The Bundesbank President additionally referred to as for much less paperwork, reminiscent of quicker approval procedures. In addition, corporations and households want extra planning safety in power coverage and the EU should make progress in merging the capital markets in order that corporations can entry capital extra simply.