Sustainable Financing for Social Security Systems

Germany’s next government should not adopt any further pension packages that would further drive up the already rapidly growth in expenditure on old-age provision in the long term, and it should not extend the suspension of the catch-up factor and the double stop line beyond 2025. To put the financing of the pension system on a sustainable footing for the long term, the standard retirement age in Germany must be raised. The increase in the standard retirement age should be rule-based – linked to life expectancy or to years of life with good health.