A year after the pension reforms were introduced allowing workers with 45 years of contributions to draw a full pension at age 63 compared with 65 previously, the Institute for Employment Research (IAB) (research institute of the German Federal Employment agency) published a study on June 24 that examined two points: to what extent are companies affected by the move from 65 to 63 and how are they reacting to the change? The study is based on a representative survey that showed about 11% of businesses in west Germany and 14% in east Germany have actually felt the effects of the reforms. Numbers vary across regions, sectors and also depend company size. About a quarter of businesses affected try to retain their workers by introducing flexible working hours, salary rises or bonuses.
The IAB introduced their study by recalling the controversy that surrounded the introduction on 01 July 2014 (c.f. article No. 8134) of the change in pension age to 63. Those against the reform predicted a new wave of early retirement and a drain in valuable resources given the demographic context and the growing shortage in skilled labor. “Early retirement was a consensus tool much used in the 90s. It is interesting to see how businesses are coping with its re-introduction,” wrote the IAB....
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