Erosion of pensions

A look at the pension fund statements of the last fifteen years shows that many future retirees will have to live with lower income. This is because the projected pension from the 2nd pillar will fall by 20% to 30% over this period due to falling conversion rates. So those who retire in the future will pay the price for the reduced investment income and not fully funded pensions of today's retirees due to increased life expectancy.

Stable old-age provision has different meanings for different generations. Every generation has an interest in seeing today's pension system reformed. However, one decisive factor is common to the individual generations: All are affected by the current system in one way or another.

Compared with today's retired population, the build-up of retirement capital is much slower for people who are still in employment. This is due to the ongoing decline in yields. The youngest generations are the most affected. That is why today's active population should have a strong interest in measures that significantly increase the return on their contributions. But retired people should also have an active interest in increasing the return on their continuously decreasing retirement capital.