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Life Expectancy Over 90 Today, Retirement at 70 Tomorrow? A Visionary, Predictive Brief Analysis

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  • Eckart Bomsdorf

Abstract

Life expectancy is rising from year to year in Germany. This also applies to the life expectancy of pensioners, which means that individuals are claiming pensions for longer, although pension funds are not receiving any extra payment on the revenue side. Capital-funded, private pension funds compensate for this effect with lower pension payments or higher contributions; while this phenomenon has been largely ignored by statutory pension schemes to date. In the view of Eckhart Bomsdorf, University of Cologne, rising life expectancy cannot merely be reflected in people claiming pensions for longer, but should also impact their working lives. The statutory retirement age for a state pension, which is also referred to as the legal retirement age, should be adjusted in the long term. It could be lastingly linked to developments in life expectancy; which would result in the retirement age rising to 69 or 70 in the long-term. This should be preceded in the short to mid-term by greater flexibility in the actual retirement age and an adjustment of the additional income ceiling.

Suggested Citation

  • Eckart Bomsdorf, 2015. "Life Expectancy Over 90 Today, Retirement at 70 Tomorrow? A Visionary, Predictive Brief Analysis," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(23), pages 15-23, December.
    • Handle: RePEc:ces:ifosdt:v:68:y:2015:i:23:p:15-23
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    References listed on IDEAS

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    1. Börsch-Supan, Axel & Bucher-Koenen, Tabea & Kluth, Sebastian & Haupt, Marlene & Goll, Nicolas, 2015. "Vor- und Nachteile höherer Flexibilität als Instrument zur Erhöhung der Beschäftigung Älterer," MEA discussion paper series 201506, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
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    Cited by:

    1. Eckart Bomsdorf, 2018. "Securing the Pension Level – A Brief Analysis und System-Friendly Proposal," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(11), pages 30-34, June.

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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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