00:00Work more, pay more, retire later.
00:03Germany wants to reshape retirement.
00:06New proposals for a reform suggest, many workers could soon be working past the age of 67.
00:13And the younger you are, the higher the age of retirement gets.
00:16At the end it's not right, but we can't leave the people hungry.
00:30Instead of a fixed age for retirement, a group of experts has advised the German government
00:36to automatically change it in tune to life expectancy.
00:44Germany's current pension system is built on a promise.
00:47You work, you pay into pensions for current retirees, and in return future workers pay for your retirement.
00:55But there's a math problem. Germans are on average living around 10 years longer.
01:01So there are more retirees, but birth rates are low, so there are fewer future workers.
01:07With the new reforms, the government is trying to figure out how to still keep that promise
01:12and make the pension equation work.
01:23A commission of experts has presented a long list of proposals to the German government.
01:29They recommend working longer and introducing contributions for self-employed people and for politicians.
01:37They also propose cancelling the option to take early retirement with no deductions at the age of 63.
01:45That is currently available to employees who have worked for 45 years.
01:58And for the first time, Germany could invest some of the pension funds in financial markets.
02:04This is inspired by the Swedish pension model and introduced more transparency so workers can see clearly how much money
02:12they will be getting when they finally retire.
02:15This is an understatement.
02:15For more information, Germany could visit this past year.
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