Growing Old at Work

In Berlin Wednesday, the cabinet agreed to raise the retirement age by two years -- a change to be implemented in stages from 2012 to 2029.

The change means those born in 1964 and after will be entitled to a full pension at the age of 67, while anyone born before 1954 can still retire at 62. Retirement will be staggered for those born in the 10 years in between. An exception to retirement at 67 will also be made for anyone who paid into the security system for 45 years or more.

Meanwhile, the Social Security Court in Kassel ruled to raise pensioners' long-term care insurance contributions, with both measures triggering claims from the VdK social organization that senior citizens are becoming impoverished.

"The barest of insurance"

"The government has pushed the retirement age up to 67 as another way of cutting pensions, said VdK President Walter Hirrlinger.

"The pension is being reduced to the barest of insurance," he said, stressing that the move would have negative repercussions for the younger generation in years to come.

In fact, according to the Federal Statistics Office, pensioners are better off than ever with only 2.7 percent of social welfare recipients older than 65.

But Hirrlinger also pointed out that raising the retirement age is pointless when over 50 percent of employers will not hire workers over 50.

"Politicians are getting ahead of themselves," he said. "What they need to do first is make sure that the elderly who can and do work are actually allowed to continue to do so until the age of 65. Once this has been established, they can start thinking about raising the retirement age."

Age discrimination

As it happens, the government has already begun addressing the problem of age discrimination.

Wednesday also saw Labor Minister Franz Müntefering unveil his "Initiative 50+."

The scheme is designed to boost employment options for the elderly and includes the introduction of state subsidies for further training and financial rewards for anyone who takes a job paid less than the would receive in unemployment benefits. Employers, meanwhile, will receive a bonus for hiring staff over 50 for at least one year.

"Intelligent, far-sighted companies have already realized that a cross-section of generations is a recipe for successful," Müntefering said at the project's launch, pointing out that business needs the expertise of the elder generation, especially given the current shortage of qualified workers apparent in certain sectors.

The minister said he hoped the initiative would result in jobs for 100,000 people.

"Only 45 percent of over-55s are still working," he said. "This is not enough. That 50 to 60-year-olds should not be written off is a question of humanity."