In 1957, a comprehensive pension reform was carried out in the Federal Republic of Germany.
Until this year, each employee financed his or her own pension by paying
contributions into a pension account in equal shares with the employer.
However, the disadvantage of the system was that it did not cover actual
needs, as the capital cover was too low.
With the introduction of the pay-as-you-go system, a different pension system was
finally created in which working citizens were to finance the pensions of retirees.
Today, economic experts such as Clemens Fuest, head of the ifo Institute for Economic Research, warn that the
system would not be sustainable because the older generation would live at the expense of the young.
The pension level can only be kept stable if the retirement age is raised.
But that is only half the truth:
The financing of pensions would still be secure without the demand to
raise the retirement age being implemented.
Since the introduction of the intergenerational contract, the state has misappropriated
and embezzled over 900 billion euros from the pension fund for non-insurance benefits.
Instead of admitting the whole thing and ensuring a balance, they prefer to fuel the conflict between young and old and unabashedly push back the retirement date.