INSM-Study reveals loss of trust in state pension / Criticism of contribution increases / Majority against retirement at 63 for the first time
Berlin – The trust in the state pension in Germany is low. A majority of 71 percent considers the state pension to be insufficient to protect against old-age poverty. The prevailing emotions associated with retirement are concern (52 percent), disappointment (42 percent), and anger (33 percent), while significantly fewer respondents feel positive emotions: joy (12 percent), confidence (12 percent), and trust (9 percent). These findings are based on a recent representative survey conducted by the opinion research institute Civey on behalf of the Initiative Neue Soziale Marktwirtschaft (INSM) among 5,000 individuals.
The planned increase in pension contributions by the federal government is more likely to be rejected (49 percent) than supported (31 percent, rest undecided). Surprisingly, for the first time, there is a majority against the retirement at 63, also known as „Rente mit 63,“ which provides penalty-free early retirement for individuals with many years of contributions. INSM Managing Director Thorsten Alsleben stated, „These results illustrate the growing skepticism towards the state pension and the urgent need for reforms.“
„Leidtragende der Überalterung“
The perception is unanimous across all age groups that the pension is insufficient to protect against old-age poverty. It is most prevalent among those aged between 30 and 39, with 78 percent, and least prevalent among the elderly (65+) with 62 percent.
Almost 38 percent of respondents see both the elderly and the younger generation as victims of population aging. Nearly 25 percent believe that the younger generation is more disadvantaged by demographic change, while almost 20 percent believe it is the elderly (65+). 13 percent are of the opinion that no age group will suffer from population aging.
The previous pension policies have overwhelmingly favored the elderly. This is the view of 41 percent, while only about 6 percent say it has been in favor of the younger generation. Both equally say 13 percent, and neither say 33 percent.
Political measures and pension plans
The planned pension package II by the federal government is viewed differently. The associated increase in pension contributions is critically viewed by all age groups and by supporters of all parties except the SPD.
The proposal from the FDP to establish a debt-financed state fund to support the pension system („Generationenkapital“) is supported by around 40 percent and opposed by 38 percent. The rest is undecided.
Majority against „Rente mit 63“ for the first time
While the penalty-free retirement for individuals with many years of contributions, known as „Rente mit 63,“ has been supported by a majority in all polls, there is now a clear majority against it for the first time. This could be due to a different question asked in this survey. Instead of inquiring about support for „Rente mit 63,“ the description was used: „How do you evaluate the fact that penalty-free early retirement is currently made possible by slightly higher contributions from all contributors and slightly lower pensions for retirees?“ 64 percent of respondents viewed this critically, while only 16 percent supported it.
Private provision
Regarding private retirement provision, 34 percent of respondents stated that they would increase their private provision if there were state subsidies. 30 percent would increase their self-provision if they had more control over investment choices, and 25 percent would do so if the acquisition of real estate were made easier.
Beamtenpensionen and state pension
The opinion of the respondents is particularly clear on the topic of civil service pensions. An overwhelming majority of 80 percent demands that civil servants be integrated into the state pension system in the future. Furthermore, 66 percent advocate for preferring employment relationships over civil service positions in financial administration.
Similar opinions prevail for teachers (65 percent), professors (70 percent), as well as administration staff in municipalities (80 percent) and ministries (76 percent). The only exception is the police, where over 60 percent of respondents continue to support civil service positions.
Alsleben: Need for reform of the pension system
INSM Managing Director Thorsten Alsleben commented, „The results of the INSM survey clearly demonstrate the urgent need for comprehensive reforms in the German pension system. The pension package II must not be passed.“ The growing dissatisfaction and diminishing trust in the state retirement provision are clear messages to the politicians to explore new paths and make both the state pension and private retirement provision more attractive and secure. The clear rejection of privileges for civil servants regarding retirement provision, according to Alsleben, „before any urgently needed pension reform, the abolition of civil service status for new hires in administrative positions must come first.“
