German MPs raise retirement age (BBC) {from 65 to 67}

[eppur_se_muova]

The German Bundestag, the lower house of parliament, has voted to raise the retirement age from 65 to 67.

Germany has one of the lowest birth rates in Europe, and on current trends the population aged over 65 will almost double to 30% by 2035.

The plan means that anyone born in 1964 or later will have to wait until they are 67 to collect a state pension.

It is expected to be approved by the upper house, the Bundesrat. It will be phased in gradually from 2012 to 2029.

The Bundestag also approved a bill designed to attract people born after 1945, the "baby boomers", back into the labour market, to cut the cost of the country's ageing population.
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more: http://news.bbc.co.uk/2/hi/europe/6434929.stm

Interesting contrast: the German gov't is forcing its citizens to work longer to make up for the fact that their state pensions are so generous. American citizens are forced to work longer because their SS and Medicare benefits are so inadequate.

Either high birthrate or REAL economic growth should lead to dropping retirement ages. We can't afford the former; let's bring back the latter!

[deadmessengers]

1. It makes sense to me.

Humans are, on average, living longer than when the retirement age was set (Back in the 1930s here in the US, not sure for Germany). The gov't pension funds have to compensate somehow for having to pay out to the average retiree longer. They can do that by increasing the tax that's paid in to support the pension system, reduce benefits to existing beneficiaries, or they can adjust the retirement age to compensate for the dramatic increases in human lifespan. Any way you look at it, something's got to give.

Raising the retirement age seems more equitable to me - continuing to use a retirement age of 65 that was set when the average human lifespan was also 65 seems silly.

[David__77]

2. I disagree.

We should be keeping it at 65 and enjoying longer retirements because we have advanced as a civilization and are moving further from barbarism. Working till death should not be an eternal conception.

[deadmessengers]

3. Working till death?!?!

I didn't say anything about working till death. The human lifespan is approaching 80 years now, an increase of about 17 years over what it was when the rules were set. I'm simply saying that a couple of years more isn't a bad thing if it means that we avoid the whole system collapsing in on itself as a result of not doing so.

But, if you believe that raising the retirement age by a couple of years is a bad idea, then I'm certainly willing to hear you out. How would you continue to pay for old-age pensions as the average pensioner collects for longer periods of time? The money has to come from somewhere, right?

[The2ndWheel]

4. Why not lower than 65? Now that would be advanced

If advanced countries have fewer people, yet increasing demands, the money has to come from somewhere. If you have more people retiring than working, where is the money coming from to enjoy longer retirements? Nothing comes for free.