Pension crisis in old age: urgent reforms required!

Pension crisis in old age: urgent reforms required!

In Germany, the number of pensioners who rely on basic security is increasing dramatically. The current statistics show that the highest level of basic pensioners in history will be reached in 2024. This is a worrying development that puts pressure not only on those affected, but also on the entire social system. What is behind this increase and what causes can we find for it?

The German pension insurance has pointed out this problem and explained the reasons for it. Since the basic pension came into force in 2021, a new tax-free allowance regulation has applied. This regulation enables people over 67 who need financial support to benefit from basic security. In particular, those who have paid contributions to pension insurance for 33 years or more but only receive small pensions can make use of an allowance that increases annually. This sounds positive at first and offers many people the help they urgently need.

Causes of the growing need for social assistance

However, a different picture emerges: a continued increase in the number of eligible people does not necessarily mean an improvement in living conditions. Fewer and fewer people, especially women, can actually live on their pension. As a result, they are dependent on social assistance to cover their everyday lives. The increase in social assistance rates is therefore an alarming sign that points to structural deficits in the pension system. It is becoming clear that the existing pension system is not sustainable and urgent reforms are needed.

The discussion about the necessary reforms is long overdue, especially in light of demographic change in Germany. More and more people are reaching retirement age, while at the same time the number of people paying in is falling. This imbalance cannot be ignored because it has far-reaching consequences for the entire society and the social security system. There is great pressure on statutory pensions and without comprehensive reforms the situation will continue to worsen. It is obvious that the measures taken so far, including Pension Package II, are not sufficient to overcome the challenges ahead.

Social security for pensioners is a social task that must be taken seriously. The developments of the last few years are a clear indication that there is an urgent need for action here. Without fundamental changes to the pension system, it can hardly be expected that the situation will improve sustainably for many seniors who already have to live on basic income. The time for a major pension reform has come.