Part 3/9:
Impact on the Social Safety Net
Germany’s social insurance system, encompassing pensions, healthcare, and unemployment benefits, is under relentless pressure. Contributing factors include rising inflation, stagnating wages, and increasing expenditures driven by military commitments.
Healthcare deficits soared from €1.9 billion in 2023 to a projected €6.2 billion in 2024, with estimates suggesting that deficits could reach €27 billion by 2025.
Wage increases are lagging behind inflation, resulting in lower real incomes despite nominal raises.
The pension system faces a bleak outlook, with deficits expected to escalate from €2 billion in 2024 to potentially €7 billion in 2025, and reserves could be depleted entirely by 2027.