Germany’s state pension system is on the verge of collapse and may not be financially sustainable in five years’ time if reforms are not made, Confederation of German Employers’ Association president, Rainer Dulger has warned.

Speaking to the Bild am Sonntag, the president of the think tank called for the retirement age in Germany to be linked to linked to life expectancy.

Currently, the state pension in Germany guarantees pensioners at least 48 per cent of the average wage until 2025.

The state pension age is 65, although it is in the process of gradually increasing to 67.

Dulger noted that for every 100 contributors, there are currently around 50 pensioners.

He warned that this was set to rise to around 70 pensioners for every 100 contributors in 15 years.

“This means that the financing of our pension system is on the verge of collapse,” Dulger stated.

“The retirement age should be linked to the increase in life expectancy. It must not be the case that the further increase in life expectancy leads to an ever longer retirement.

“The citizen's income threatens to divide our society. It can't be right that some people who go to work in the morning have only a little more money available than someone who doesn't go to work in the morning.

“That's unfair and sets the wrong incentives.”

Share Story: