Germany Faces Gigantic Wealth Loss Due to Aging Population
A recent study by the IW research institute in Cologne warns that Germany is facing a significant loss of wealth in the coming years. The study reveals that millions of Germans will retire in the next few years, leading to a decline in the country’s economy due to a shortage of young workers to fill vacant positions. The researchers predict that every German citizen will experience an income loss of €4,000 per year. The baby boomer generation, which represents the largest group of births in Germany, will retire by 2035, leaving more than five million job vacancies.
The study highlights the urgent need for the government to take action to address the issue. Michael Hüther, the head of the IW study, emphasizes the importance of expanding schools and daycare centers to enable parents to work full-time instead of part-time. Additionally, qualified immigrants can help fill the gap in the labor market. The study also suggests that older workers should be given the opportunity to work longer to keep up with the labor market. The researchers recommend an increase in the retirement age to address the issue.
If the government fails to take action, the study predicts that the country’s GDP will decline by €326 billion by 2035, and every worker will earn €4,000 less per year. The researchers warn that a “business as usual” approach is not in the interest of the government. Therefore, the government must act quickly to prevent a significant loss of wealth in the coming years.
In conclusion, the aging population in Germany poses a significant threat to the country’s economy. The government must take immediate action to address the issue by expanding schools and daycare centers, attracting qualified immigrants, and allowing older workers to work longer. Failure to act will result in a significant loss of wealth for the country and its citizens.
