The leader of an employer organization warns that early retirement is contributing to a skills gap.
There's been a heated discussion going on for days between liberals, social democrats, and economists about retirement at the age of 63. Now, even the employers' association president, Dulger, is getting involved in the conversation. He's calling for an end to the scheme.
In the ongoing debate on retirement at 63, Dulger has cautioned about a major shortage of skilled workers and issues for Germany as a business hub. As the baby boomer generation prepares to retire in the coming years, businesses might lose a significant number of their top employees early on if the regulation is kept in place, Dulger told the Augsburger Allgemeine.
"About 500,000 more people retire each year than enter the job market," explains Dulger. This is why the pension plan from age 63, which allows early retirement without any deductions, needs to be immediately abolished. Companies are investing less and less in Germany, even though 90% of investments have usually come from the private sector and not the government.
"We must ensure that private investment continues to flow," insisted Dulger. It's becoming increasingly concerning that fewer and fewer foreign investments are being made in Germany as a business location. "In the last three years, we've witnessed a record net outflow of around 100 billion euros annually." Steps must be taken straight away to address this issue. "What's the point in companies setting up shop here if the availability of qualified workers and staff is so low due to political decisions like early retirement?"
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In response to the concerns about the retirement age, Dulger, the president of the Confederation of German Employers' Associations, has advocated for the abolition of the pension plan allowing early retirement at 63. This is due to the significant number of skilled workers retiring each year, leading to a potential skills gap and less investment in Germany.
Source: www.ntv.de
