Does Germany need to reform its pension system?

euronews (in English)

With politicians focussing on poverty in old age, many are calling on the German government to reform the pension system. But how serious really is the situation?

Transcript

00:00Pensions has become a hot topic in Germany, with several political parties capitalising on poverty amongst retirees.

00:07We sat down with Berlin pensioner, Anqi, who told us she receives 1,500 Euros net per month

00:14after a 45-year career working as an elderly carer, to ask about the reality of pensions.

00:20I think it's a good amount. It's enough for me.

00:25And what about the other pensioners at the care home Anqi worked at?

00:30I noticed in general that elderly people who have to be accommodated somewhere

00:38or are being accommodated by their relatives and so on,

00:43many of them don't have much, they only have a little bit of basic pocket money a month,

00:48and they don't have a good life.

00:51In the past, especially the women who were at home,

00:56they were dependent on their husband or took care of their children.

01:02And at this age, they are very much left alone, also from the start.

01:09We spoke to the German pension system, who highlighted that pensions are tied to wage development

01:15and said that pensions have increased by 4.5% this year.

01:19They also recommended relying on other sources of income for retiring.

01:23In Germany, we have the so-called three-pillar model since 2001.

01:28This means that retirement income is not only the legal pension insurance,

01:33but many people also get it from other sources.

01:36For example, three pillars, the large supporting pillar, the legal pension insurance.

01:42But there is also the private pension insurance and the business pension insurance.

01:47And these can also be sources of income in old age.

01:50There is also capital assets, there is income from rentals and deposits,

01:56there may be a partner who finances you,

01:59so that when you look at your retirement income later,

02:03you should always look at the household context

02:07and not just look at the legal pension insurance.

02:10Despite that, the pension system is a gift that allows seniors

02:13who have contributed to society for 45 years

02:16to be given the opportunity to retire for another few decades in peace.

02:20Liv Stroud, FIURO News.

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