Martin Lewis shares tips for boosting state pension
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Germany has one of the oldest populations in Europe with 22 percent of its population aged 65 years or older. However, the UK is not far behind with 19 percent of the population aged 65 and older – a figure that is expected to increase to 22 percent in just 10 years’ time.
Under Germany’s current system, the state pension guarantees retirees at least 48 percent of the average wage until 2025.
Its current state pension age is 65, but, similar to the UK, the German Government is in the process of gradually increasing this to 67-years-old.
Rainer Dulger, president of the Confederation of German Employers’ Association, told the Bild am Sonntag newspaper the current system could crash within five years unless the state intervenes.
He said: “For every 100 contributors, there are currently about 50 pensioners; in 15 years, there will be 100 contributors for every 70 pensioners.”
Mr Dulger said the retirement age needs to increase or the current system will not hold up.
He said: “This means that the financing of our pension system is on the verge of collapse.
“The retirement age should be linked to the increase in life expectancy.
“It must not be the case that the further increase in life expectancy leads to an ever longer retirement.”
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The British Government is also in the process of raising the state pension age to 68-years-old but experts here are also warning it may have to rise even further.
Simon Jones, CEO of InvestingReviews.co.uk warned the Government may change its policy as the state pension becomes more expensive to fund.
He told Express.co.uk: “The Government currently plans to increase the state pension age from 66 to 67 between 2026 and 2028, and again to 68 between 2044 and 2046.
“Because people are living longer, it’s becoming more expensive every year for the Government to fund the state pension.”
Mr Jones continued: “Because people are living longer, it’s becoming more expensive every year for the Government to fund the state pension.”
Meanwhile, the state pension triple lock under threat again as Prime Minister Rishi Sunak has hinted the pledge will be ditched.
The triple lock means the state pension should rise in line with whichever is highest of 2.5 percent, wages and inflation.
An Express.co.uk poll showed significant concern among readers over the Government’s refusal to commit to the state pension triple lock.
Former Prime Minister Liz Truss committed to the policy but since Mr Sunak took office last week he is yet to clarify his stance.
The Prime Minister’s press secretary said Chancellor Jeremy Hunt would address the future of the triple lock in his autumn budget on November 17.
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