Pensions to be Revolutionized with Germany’s ‘Generation Capital’ Plan According to New Proposals
Berlin, Germany – With Germany’s baby boomers from the late 50s and 60s now reaching retirement age, the country faces a challenge of supporting an increasingly aging population while dealing with a shrinking workforce. The pension system, established in 1889, relies on a public retirement insurance scheme where contributions from the current workforce support the pensions of retirees – a system known as the “intergenerational contract.” In the 1960s, there were six workers for every …