The Posi­ti­ons of Ger­man Insu­rers in 2020: Demo­gra­phic change

Old age is for later – all the more rea­son to act now

The healthy economy and high employment rate are making public budgets and social security systems look good. This hides demographic challenges, though.

The healthy economy and high employment rate are making public budgets and, as a result, social security systems look good right now. This situation, however, is covering up for the structural, demographic challenges ahead of us, as demographic burdens continue to be shifted solely onto the younger generations – in both the statutory pension insurance and in health and long-term care insurance. We must assume greater responsibility for the younger generations and be honest: if we live longer, we have to work longer and make provisions that are fair to every generation. This is the only way we can ensure that our social security systems will be able to continue to operate reliably in the future. 

Used correctly, an increase in capital coverage would be part of the solution. There must, however, be a healthy balance between security and return. In view of the cyclical and global economic risks, focusing solely on saving through equity investments would be reckless – even more so if you factor in the political risks of a sovereign wealth fund.


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