By jumping from 20% in 2000 to almost 58% in 2017 the employment rate for those aged between 60 and 64 has risen more sharply in Germany than anywhere else in the EU. Thus the results of a third government report published on 28 November on the effects of legislation that between 2012 and 2029 sets the legal retirement age progressively higher starting from 65 to reach the target 67 years of age. This ‘extremely positive change’ shows that the law, which was decided upon in 2007, remains ‘necessary and justified,’ stated the government that on the same day confirmed the annual report on current and expected changes in old-age insurance. According to Hubertus Heil (SPD), the Minister for Employment and Social Affairs, this report shows the old-age insurance system is in robust financial health and indicates that legislation adopted by the Bundestag on 02 November that aims to stabilize legal pension amounts at 48% of net income as well as contributions to old-age insurance at 20% of gross salary until 2025 is well set to make an impact.
Sharp rise in employment rates especially among older women. When the then highly controversial 2007 legislation on retirement age was adopted that commenced the process of increasing retirement age to 67, (c.f. article No. 1544), the Bundestag tasked the federal government with producing a report every four years that would track changes in employment activity among older cohorts and gauge if the gradual increase in retirement age was still ‘necessary and justified’, in light of changes in the labor market and in senior cohorts’ economic and social situations.
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