Abstract The retirement of baby boomers and rising life expectancy pose major challenges for the German pension system. The current reforms being implemented by the Federal Government, particularly the extension of the pension-level freeze and the expansion of maternity pensions, will exacerbate long-term financing problems. As an alternative, we present a comprehensive reform package consisting of four measures: abolition of the ‘pension at 63’ rule, linking the retirement age to life expectancy, greater weighting of the sustainability factor and inflation-oriented adjustments of existing pensions. The reform package stabilises contribution rates, curbs expenditure and ensures adequate pension benefits.
Ferenc et al. (Sun,) studied this question.