Pensions in Germany forgo a percentage of their state pension. 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
Pensions in Chile to pay into the old system. But the statutory minimum contribution to the new private pension funds was set 11% lower than the contributions to the old pension system, therefore most workers changed to the new pension system. Chilean military that implemented the new AFP system excluded themselves from it keeping obtaining their pensions from the Caja de Previsión de la Defensa Nacional. The pensions of the military are substantially higher than those of the rest of Chileans, being most often similar to the income they have during active service. However, differently from what a regular, society-wide, PAYGO system would