The increasing number of retirees in Germany relying on basic benefits highlights the current challenges of the pension system. In March 2025, the number of recipients of basic benefits among retirees reached a peak of 742,410 individuals. This development is closely linked to demographic change: the proportion of individuals over 67 years old is expected to rise from 20% to 24% by 2036, further increasing the pressure on the pension system.
Financial Impacts on Savers and Investors
Financially, this situation has direct implications for savers and investors. As more and more people are inadequately secured despite receiving a pension and require state support, political pressure is mounting to reform the pension system and make it more sustainable. The federal government is planning measures such as pension reforms and early retirement options, as well as stabilizing the contribution rate at about 18.6% until at least 2026. However, long-term financing remains a significant challenge in light of the aging population.
Increased Risk for Savers
For savers, this means an increased risk: the statutory pension alone is not sufficient for many, making private retirement savings more important than ever. Simultaneously, rising social expenditures and potential adjustments in the tax system or social contributions could affect returns and savings incentives.
On a positive note, starting in 2025, increased exempt amounts in the basic pension may allow more retirees to qualify for additional benefits or receive higher benefits, providing some temporary relief.
- More older individuals are financially dependent on state support, which puts a strain on the system.
- Demographic change exacerbates the funding situation.
- Political measures aim to stabilize contribution rates, but long-term reforms remain necessary.
- Savers and investors need to focus more on private savings, as statutory pensions often do not suffice.
- Adjustments to basic pensions can help in the short term, but they do not address the structural problems.
These developments highlight that both politics and citizens face significant challenges regarding sustainable security in old age.