Pensions in Germany Pensions in Germany Pensions in Germany are based on a “three pillar system”. The scheme is based on the pay-as-you-go (or redistributive) model. Funds paid in by contributors (employees and employers) are not saved (or invested) but are used to pay current pension obligations. Civil servants in Germany do not pay any contributions themselves but their salaries are correspondingly lower than those in the private sector. Recent changes to the system mean that from 2012 to 2023 the retirement age will go up to 66 by 2023. From 2023 the retirement age will be increased by two months each year,
Old Age Allowance the means-tested Portable Comprehensive Social Security Assistance (CSSA) instead. In 2013, the Social Welfare Department began accepting applications for OAA from Hong Kong residents who lived in Guangdong. However, receipt of payments continued to require an account at a Hong Kong bank, which proved difficult for some recipients whose banks told them they could not maintain an account without a Hong Kong address. Recipients of Normal Old Age Allowance of ages between 65 and 69 have long been required to meet a means test; however, attempts to introduce a broader means test as a trade-off for increasing the OAA have