With the UK elections just around the corner, the issue of pensions is at the centre of political debate. Many voters are calling for a reform of pension policy.
With the UK general election approaching, many British citizens are expressing anger at the current government's pension policy. Pensioners complained to the BBC about low wages and an overly high retirement age. They feel abandoned by the government.
Pensioners: Inequality in employment duration is “highly unfair”
Doug Workman, a 63-year-old construction worker from Chilcompton, is calling on the government to lower the retirement age. He finds it “increasingly difficult” to do physical work and asks: “How can it be fair that I work from the age of 16 and have to work until I'm 67?”
He also considers it “very unfair” that children who continue studying full-time until the age of 18 have to work two years less, the Briton stressed to the BBC.
Britons feel let down by government
Michael Stancliff, an 86-year-old pensioner from Bridgwater, criticises the British government for failing pensioners in the past by failing to implement tax reforms or pension increases.
“My whole life has been tax, tax, tax,” he told the BBC. He demands tax-free private pensions because he still has to pay taxes on his four different pensions.
According to the BBC, there are currently around 12 million pensioners in the UK. However, increasing life expectancy inevitably leads to an increase in the retirement age. For those born after April 5, 1960, the retirement age in Britain will gradually rise to 67 and 68 between 2044 and 2046, according to the BBC.
The retirement age is also increasing in Germany
As in the UK, the retirement age is also rising in Germany. Data from the German Pension Insurance show that the average retirement age of Germans in 2003 was 62.9 years. In 2023, the average retirement age was already 64.4 years.
Women are particularly affected by the increase in the retirement age. For women, the duration of insurance has increased from 26.6 to 37.3 years. For men, it has risen from 40.5 to 41.4 years. In the so-called “old” federal states, the duration of insurance has increased from 23.2 to 35.9 years, and in eastern Germany from 41.1 to 42.9 years.
Pension duration in Germany hits record high
The gradual increase in the retirement age is a direct response to demographic change in Germany. German pension policy in recent years has been aimed at maintaining a balance between contributors and pension recipients in an increasingly ageing society. The trend is therefore towards later retirement and, therefore, a longer working life.
However, a late retirement also means an extension of the benefit period. On average, pensioners today receive pension benefits for more than 20 years, more than three years longer than in 2003.