According to some experts, progressive ageing of Germany’s population may harm the country’s economy. Many Germans will spend their twilight years either living in poverty or working till the last breath, analysts claim.
At present, one in five Germans is over the age of 65. By 2060, it is expected to be one in three. Specialists explain this demographic shift by the so-called "baby-boomers" born between 1955 and 1969, who reached retirement age. As a result of modern medical advancements and high-standard social services, they will live longer than previous generations did.
A study by the Bertelsmann Foundation showed that nearly two-thirds of German citizens believed there were significant risks associated with the country's population ageing. The most dangerous consequences are growing poverty among the elderly and an increase in the retirement age.
The main question is what can be done to avoid it. There are two obvious ways: to prop up the birth rate and to greenlight immigration. In 2016, Germany registered its highest birth rate since 1973. Local media even reported a new “baby boom.” However, despite having hit a 40-year high, the rate did not exceed the EU average of 1.60. Experts say, the level of 2.1 would prevent a decline in population.
Boosting immigration is also a controversial measure. In 2015, Germany recorded its highest rate of immigration among the EU countries. About 2.1 million people arrived that year. Most of them were under the age of 35 and hailed from Syria, Afghanistan or Iraq. They helped Germany to address its labor shortage. Three years later, a total of 307,000 people from these Asian countries have found work in the country. Furthermore, over two-thirds of them pay social security contributions. These figures show progress made; however, they also remind that integration takes time. As cited by the Bertelsmann Foundation, Germany needs 260,000 immigrants each year until 2060 to meet its labor market demands. Progressive population ageing forces the authorities to address this issue, analysts summed up.
