A prominent German economic advisor has voiced support for proposals suggesting a need for increased workforce participation and later retirement ages in Germany. Veronika Grimm, a member of the German Council of Economic Experts, affirmed the necessity of incentivizing individuals to remain in the workforce for a longer duration, aligning retirement ages with increasing life expectancy.
Professor Grimm, speaking to the Funke Media Group newspapers, stated that this adjustment would bolster the stability of the German pension insurance system without immediately necessitating a retirement age of 70. She further proposed indexing existing pensions to inflation rather than wage increases as a crucial step.
Grimm cautioned against relying on certain commonly discussed solutions. She argued that increased immigration alone wouldn’t necessarily guarantee the long-term sustainability of the pension system, as new arrivals also accrue pension entitlements. Similarly, integrating civil service employees into the general pension scheme, she argued, would not resolve the underlying issues. She expressed concern that efforts to devise superficial solutions could divert valuable, highly-skilled personnel within governmental ministries.
