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
First MacDonald ministry pension. Eligibility for the state pension was also extended so that it covered 70% of the over-seventies, and 150,000 elderly people who had never received a pension before were now entitled to them. In addition, changes were made which allowed for pensions to be transferred to a surviving parent of a dependant who had a pension. An Old Age Pensions Act was also passed, which guaranteed a weekly pension of ten shillings (50p) to people over the age of seventy who earned under 15 shillings (75p) a week. The government also endeavoured to extend educational opportunities. Local authorities were empowered,