New rules reversing reforms of Germany’s statutory pension system took effect on 1 July 2014. Some critics estimate that these more generous pension rules will cost an extra €10 billion over the next decade, and younger workers will have to fund them with little chance of receiving equally generous benefits when they retire.
„Actuarially Fair” Reductions in Early Retirees’ Pension Benefits
Calls for the reduction in state pension benefits for early retirees to reflect real insurance risks imply that early retirement need not involve any additional costs.
Michael Hüther / Jochen Pimpertz IW-Policy Paper No. 6 6. October 2022
Asset accumulation for retirement provision
The pay-as-you-go statutory pension insurance is intended to protect workers in Germany from having to rely on tax-financed assistance in old age. However, due to the ageing of society the security level of the statutory pension insurance must decrease.
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German Economic Institute (IW) 
