The demographic pressures on the German population mean that contributions to the country's state pension scheme will have to rise markedly from 2030, according to economists at the University of Wurzburg.
Investment and Pensions Europe (IPE) reports that Hans Fahr and Christian Habermann have written a paper that forecasts the country’s statutory state pension contribution will rise from the present 19.5% to 25% after 2030.
The academics cite a combination of demographic factors as the main drivers of the change, notably Germany’s falling birth rate.
The objective of the Riester reform in 2001 was to keep pension contribution rates below 22% until 2030. Our calculations indicate that there is only a 11.3% chance that the contribution rate will below 22% in 2030, they wrote in a new paper, cited by IPE.