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All compulsorily insured members of the pension insurance pay pension insurance contributions together with their employers. These contributions are used directly for payments to pensioners, one says: they are apportioned. This system is therefore also called a pay-as-you-go system.
Due to the ageing of the population, however, this is becoming increasingly difficult. Because fewer and fewer contributors have to finance more and more pensioners. To ensure that the pension remains affordable, there have been repeated pension reforms over the last 20 years, such as the introduction of retirement at 67.
If you want to understand what you can expect from the german state pension than you can calculate it accurately with our mobile app.
You can also simulate any potential investments in the app that you could make to supplement the state pension.