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Putting it together, the formula multiplies these factors to determine the eventual pension payment. For example, someone who worked for 45 years and accumulated 40 pension points might expect a pension of roughly €1,631.60 monthly, before taxes and other deductions.
The Erosion of Security: Is the Rente Really Safe?
Back in the 1980s, Minister Norbert Blüm famously proclaimed that "the age pension is safe." However, decades later, experts agree that the stability of the German pension is increasingly uncertain. The primary reason is demographic change: in Germany today, for every two retirees, there are only about four working-age individuals contributing to the system. Back in the early 1960s, the ratio was six to one, making the current model unsustainable over the long term.