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← Overview Database of Innovative Social Policies in Europe

Gradual raising of statutory pension age

Country of implementation
Germany
General short description of the innovation
Gradual raising the age threshold for standard statutory retirement age up to 67 from 2012 to 2029
Target group
Older Workers
Policy Field
  • pension
Type of Policy
  • public
Duration of the policy
2012 to 2029
Scope of innovation
  • Scope: It was/is a structural innovation with the aim to extend working life
  • Budgets: Not applicable
  • Number of intended beneficiaries: Not applicable; the political objective was to further extend working lives by raising statutory retirement
  • Spatial coverage: national
General description of (intended) objectives and strategies
Further extension of working life to cushion the prospective outcomes of demographic change. / / Increasing incentives for working longer because early retirement options are linked to standard statutory retirement age.
Nature of the innovation-long-term perspective
Further radical change following the long-term strategy to extend working lives by reducing options for early retirement, increasing incentives for working longer and raising statutory retirement age.
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • benefit duration (Shortening of the duration of retirement benefits at least for those, not benefit ing from the increasing life expectancy.)
  • benefit eligibility (Retirement transition is further postponed. The effect is even stronger because the still existing options for early retirement are strongly linked to the standard statutory retirement age (see phasing out early retirement) )
  • benefit level (In case of an early withdrawal from the labour market, pension levels were reduced by actuarial deductions.)
  • working time (Prolongation of working life)
Clarification of intended mechanisms, outputs and outcomes (optional)
This innovation has implications for the still existing options for early retirement because the upper threshold (respective retirement age without any actuarial deductions) of the respective pensions is linked to the standard statutory retirement age (see phasing out early retirement). / A) Old-age pension for long-term insured (01/2014 12/2029): Raising the retirement age without any deductions from 65 to 67 years. Early retirement at the age of 63 will be still possible but one had to accept an actuarial deduction in the pension benefit of 0.3% for each month of retirement before reaching the age of 67. Hence the maximum deduction was 14.4%. / B) Old-age pension for severely disabled (01/2015 12/2029): Raising the retirement age without any / deductions from 63 to 65 years. Early retirement at the age of 60 was still possible but one had to accept an actuarial deduction in the pension benefit of 0.3% for each month of retirement before reaching the age of 65. Hence the maximum deduction was 18.0%.
Intended target group
Older employees
Working age population
  • main source of income: paid work
  • main source of income: social protection (please specify; e.g. unemployment benefits/disability benefits/social assistance/other benefits) (Older people who are unemployed/long-term unemployment have to receive unemployment benefits I or II f or additional two years. )
Actors involved in policy-making/implementation and/or evaluation
  • making/implementation and/or evaluation-agency or national social insurance body
  • making/implementation and/or evaluation-central state
Clarification of the role of various actors
National legislation defines the legal framework. Access control in turn is the obligation of the German Pension Insurance. This refers to the fulfillment of actuarial eligibility criteria.
Intended output
  • benefit duration (Shortening of the duration of retirement benefits at least for those, not benefiting from the increasing life expectancy.)
  • benefit eligibility (Retirement without any actuarial deductions was shifted to a higher age. Early retirement was still possible but with costs)
  • benefit level (As the case may be shortening of pension benefits because of actuarial deductions. )
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