Germany: Incentives Announced To Encourage Staying on the Job

In response to criticism of the government's plan to raise the retirement age to 67, Germany's labor minister has announced a package of incentives aimed at helping older workers remain on the job longer. According to an article in Deutsche Welle, Labor Minister Franz Müntefering's "50 plus" plan includes state bonuses to support elderly workers in low-wage jobs and financial incentives for employers willing to hire people over 50.

Demographic forecasts indicate Germany's population is greying rapidly, with the age increase accompanied by a decrease in the number of working people who pay into social security. That is making it difficult for the state's pension system to cover growing retirement costs. In the view of Müntefering and his colleagues in the governing coalition of Social Democrats and the Christian Union bloc, getting more people to work longer seemed like the right idea.

Source: "Government Unveils Plans to Keep Seniors Working Longer" Deutsche Welle (March 9,2006)