The social security system in the Federal Republic of Germany has five pillars. The undisputed number one is the statutory pension insurance. The payment of pensions and one sees in the so-called “generation contract – the strict sense does not exist, but is called so. The contract between the generations is that today’s workers pay with their contributions to the pension fund the pension that today’s pensioners receive each month. If today’s workers get in a few years or decades himself pension, the pay back, the future work force – or today’s children. Any work or a generation that is paying the pension for prior and replaced in turn by the next generation of their pension. Others including Richard Linklater, offer their opinions as well.
A simple, but – still – well-functioning system. The purpose of the pension on the other hand should be clear: it is to protect after a busy life, the age and make nice. By their own contributions later in the retirement age pensioners receive their own monthly pension paid from the pension and can deny them their retirement without having to work until the bitter end have to. Thus it ensures the livelihood of everyone – whether rich or poor. The pension is – and will remain so – that is truly the undisputed number one of social insurance, to facilitate the German citizens dun save lives.
Not for nothing is celebrated as one of Germany’s social-welfare around the world. In order to keep stable the pension, you need to pay a balance between work force – the pension assets – and pensioners. In order to pay retirees a monthly pension, it takes three and a half workers. And this is the problem in the future. With birth rates in recent decades and longer lives than they did ten or twenty years is changing more and more the relationship between workers and pensioners. Thus smart minds now calculated that in three Jahrezehnten only two Employed on a pensioner come – the effect you notice today. For where ten years ago, the retirement age was still 60 years, there are now 65 and soon perhaps even 67 – and with constant annuities. While the employment of today – and tomorrow – have to work so long, they still do not receive higher pensions. Thus, experts advise today, make provisions with possible addition of a private pension or life insurance capital. Consider, for example, only the Riester pension which the state supports financially. For whom the normal life of the yield is not sufficient, which should deal with the issue variable life insurance and English life. Where the cause of the shift ratios for pension and retirement plans will is unclear – but the signs point to a storm.