Dependence of pension size on retirement age and social conditions

Germany

People born before 1947 retire at age 65.

For people born in 1947-1958, one more month is added to the retirement age of 65 for each year. Those. Germans born in 1958 retire at 66.

For people born between 1959 and 1963, retirement age is determined by adding two more months to age 66 for each year.

Thus, the retirement age is gradually increasing. Everyone born since 1964 will only retire at age 67.

Analysis of differences in exit age in countries around the world

Assessing the state of pension systems in different countries of the world, as well as the demographic and social situation, it should be noted that every year people will retire much later. This is largely due to the fact that life expectancy is becoming longer, and older people remain active and able to work for quite a long time.

In addition, the situation related to the nature of work activity has changed. If, literally half a century ago, the working conditions of many workers were quite difficult, which led to early loss of ability to work, now, thanks to the automation of work processes and robotization of hazardous industries, people are less employed in areas where the likelihood of loss of health is high.

Reference! Of course, the situation described above is primarily true for developed countries in Europe and North America. However, in general, they are the locomotive of global processes, where similar trends take place on a global scale.

For clarity, an analysis of the situation related to retirement in different regions of the world should be carried out.

In Europe

European countries are the richest and most developed. There is a high standard of living, high labor productivity, and social support for the population is given great importance and pensions are quite high.

Life expectancy in Europe is increasing, but the countries in this part of the world are experiencing significant demographic difficulties associated with low birth rates. In practice, this leads to the fact that the retirement age in European countries is gradually increasing. So, let's take a closer look by country.

Germany

In Germany this process is most noticeable. At the same time, the retirement age increases there by 1 month per year. This was done to ensure that citizens felt the negative consequences of the changes to the least extent. At the same time, starting from 2024, the age will increase faster – by 2 months per year. Thus, he will reach 67 years of age by 2029.

Great Britain

In the UK, pension reform is also in full swing. However, it is planned for an extremely long term. So, in 2021 the retirement age will be 66 years old, by 2026 it will be 67 years old, and in 2039 the British will retire at 68 years old.

France

The situation is developing in France interestingly. There, in 2021, the age was increased by 2.5 years - from 60 to 62.5 years. The French government decided not to stop there and proposed increasing it to 67 years . This was supposed to happen in 2023.

Reference! Dissatisfaction with social policy in France even escalated into street protests, and therefore the decision to further increase the relevant age was postponed.

In Asia

The retirement situation in Asian countries varies from country to country. This is an extremely contrasting region, which contains a large number of countries with different levels of economic and demographic indicators.

China

Thus, first of all in Asia, China stands out with a population of one and a half billion, where only city residents can take advantage of the right to a pension.

Villagers, for the most part, receive small social benefits and do not have a pension. For those citizens who have the right to a pension, the retirement age is 55 and 60 years for men and women, respectively.

Japan

In Japan, which is one of the richest countries not only in Asia, but throughout the world, you can retire at 65. However, the Japanese authorities encourage late retirement, so those who want to retire at 65 will receive payments at significantly less volume than those who work longer.

In the USA and Australia

The United States of America is the richest country in the world, which has been repeatedly recognized as the best place for retirees to live. There is a rather confusing pension system here, in which different categories of citizens can go on vacation at different ages. Overall, the average number of years you can stop working is 67.

In Australia, the pension system is also sufficiently developed. And here, in 2021, a corresponding reform was initiated, according to the plan of which residents of the smallest continent on earth will become pensioners later.

So, if before it began it was possible to go on vacation at 65 years old, then by the time it ends, Australians will begin to receive cash support at 67 years old. According to the plan, the reform will end in 2023.

In African countries

The African continent contains the poorest and most underdeveloped countries. In this regard, pension systems in most African countries, as a rule, do not exist as such.

Moreover, in some cases this can be explained not only by economic problems, but also by the traditions of African societies. Thus, in many of them it is believed that the younger and able-bodied are obliged to provide for the older and elderly. The same views take place in traditional societies of Asian countries.

Africa is characterized by a low standard of living and a very short life expectancy compared to the countries of the Western world.

At the same time, in many countries the role of military and government officials is extremely strong. That is why in countries such as Sudan, Rwanda, Central African Republic, Niger, etc. pension provision is provided for former military personnel and civilian managers. However, this is rather an exception to the rule.

The same thing that is said about Africa is true about the countries of South and Central America. However, there are exceptions here. Quite prosperous Chile, Argentina and Brazil have fairly developed pension systems. Thus, in Brazil, citizens retire at 60 (women) and 65 (men).

In CIS countries

The states that were part of the USSR until 1991 received a fully developed pension system, which was adopted by the then still unified country. However, all former Soviet republics, after the collapse of the country, experienced a period of economic and political instability, which required reforms in the social sphere in general and the pension system in particular.

Ukraine

Ukraine is striving for a uniform retirement age and is therefore making changes aimed at increasing it for women. So, in 2021 they will be completed, and Ukrainians will begin to receive pension payments upon reaching 60 years of age.

Belarus

For a long time, the situation in Belarus was the same as in Russia. However, reforms began there too. So, by 2023, women will become pensioners at 58 years old, and men at 63 years old . The situation is similar in Kazakhstan, but the reform is more extended in time.

Latvia

Latvia, which, as is known, is a member of the European Union, is guided by pan-European trends. So, now there is a slow increase in the age to 65 years. It is worth noting that this Baltic republic has already globally reformed its pension system twice since the collapse of the USSR.
The latter also applies to Lithuania.

USA

Under the US Social Security Act of 1935, the minimum age to receive full retirement benefits was 65. In 1983, amendments were adopted to raise the retirement age to 67 years.

Persons born between 1943 and 1954 are entitled to receive full pension benefits at age 66. For citizens born after 1954, 2 months are added to the retirement age for each year. Thus, persons born in 1955 will retire at 66 years and two months, and persons born in 1960 at 67 years.

European countries with the lowest pensions

Low pensions in Europe are mainly in countries located in the post-Soviet space or in former countries of the socialist camp.

Pensions in Poland are two to three times lower than in Western European countries and amount to about $500. It should be noted that goods and services for Poles are also at least two times cheaper.

One of the lowest pension benefits in Belarus, on average its size is about 130 dollars. To receive it, men must work 25 years, and women 20, paying about a third of their wages to the pension fund.

The size of pension benefits in Ukraine is even lower, currently the average amount is 80-100 dollars.

Only government employees and factory employees are eligible for old-age benefits in China. Financial support for the elderly is, in fact, entrusted to younger family members, children and grandchildren.

The world's largest country by population lacks money for social reforms and improvements. The state is directing efforts to develop urbanization and move away from the agrarian past, which explains such a selective approach to the assignment of old-age benefits.

The situation is the same in the second most populous country in the world – India.

The situation is even worse in third world countries such as Afghanistan, Tanzania, Nigeria, Honduras, Vietnam, Iraq, Thailand and the Philippines.

In some of these countries, pensions are limited to civil servants only, or no pensions are provided.

Czech

The retirement age depends on the year of birth, gender and number of children born (for women). For those born before 1936, the retirement age is 60 for men; for women it ranges from 53 (if she raised for at least five days) to 57 (without children).

For citizens born between 1936 and 1971, the retirement age increases annually by two months for men and by four months for women. For those born after 1971, the retirement age is 65 years.

When do payments start: earliest and latest

The fastest way to get a working pension is in the United Arab Emirates after 25 years of work. The payment will be 80% of the salary. Retirement age may occur in this country as early as 45 years or a little earlier.

Early retirement is also provided in France, but for this, a resident of the country needs to develop 41 years of service, while paying pension insurance contributions.

German citizens can retire early at age 63 if they have 45 years of work experience; if the work experience has not been completed, but it is necessary to retire early, then the Germans can do this by returning 3.6 percent of annual pension savings to the country’s budget for each early year.

The British can count on the biggest reward. For each extra year of work after reaching retirement age, the increase in payments will be up to 25 percent.

The retirement age throughout the world tends to increase, this is due to an increase in the standard of living and life expectancy. The country's highly developed economy and rapidly aging population are raising the retirement age faster. The size of pension payments is higher where a working citizen invests in pension insurance from his own funds throughout his life.

Retirement age by Oceania countries

Retirement age by African countries

Note: in some countries that indicate the absence of a pension, formally there is one, but only for a very small circle of people. For example, in Cameroon, 13.54% of residents aged 65+ receive a pension, Zimbabwe - 6.21%, Rwanda - 4.70%, Chad - 1.60%. Therefore, we classified these and other similar countries as those that do not have a pension system.

For some countries there is no information or it varies greatly depending on the sources, which gives rise to doubt. For example, what kind of pension can we talk about in Somalia or Libya, where there is no central government in a significant territory of the state and most state institutions do not actually work?

Retirement age by North American country

Life in Austria

The current figures for Austria are as follows:

1. The average annual income for 1 family is 30.0 thousand euros.
2. The number of people employed in prestigious jobs is 75%.
3. The number of people working overtime is 7%.
4. Average life expectancy is 81 years. Many live up to 95 years.
5. Quality of life assessment – ​​7.5 points/10.

Austria has the lowest unemployment rate. Austrian employers prefer to employ their fellow citizens first of all. Highly qualified foreigners with a narrow specialization are also regularly attracted.

Read about work and available vacancies in Austria by following the link.

Surprising things about pensions and retirement age in Tsarist Russia

In Tsarist Russia until 1917. pensions and retirement age have undergone the next evolution

• from 1720, according to the “Charter of the Russian Naval Fleet,” “pensions” began to be awarded to the widows and children of deceased naval officers. So Peter I tried to “popularize” naval service among the nobles;
• from 1758 , pension payments for sailors were extended to the ground forces, and from June 1761 to civil officials;
• from 1764, Catherine II established the “retirement age” (length of service) - 32 years for military personnel, and 35 years for “civilian” employees of the state apparatus;
• Since 1827, Nicholas II introduced a unified pension fund of Russia with guaranteed pension payments to nobles depending on their salary in the service. The system remained unchanged until 1917.
• Since 1896, in order to receive a “full pension”, military personnel have had their service period slightly increased to 35 years (equal to sailors), but given the opportunity to receive 1/2 pension after 25 years of service. In case of injury or serious illness, the service life was shortened: for 20 years of service a full pension was given, from 10 to 20 years - two-thirds, from 5 to 10 years - 1/3 of the pension. When serving in “dangerous regions” (Poland, Turkestan, the Caucasus), 5 years counted for 7 years towards the serviceman’s “retirement age”.

The size of pensions was divided into 9 categories . For example, a doctor in a hospital, a high school teacher and a second lieutenant in the army received 80-90 gold rubles per month in service (upon retirement - 85 rubles 80 kopecks per month). Higher officials (field marshals, ministers, members of the State Council) had a salary of 1-1.5 thousand rubles. per month upon retirement in the first category they were accrued almost the same amount - 1143 rubles. 60 kopecks per month.

The salary of a captain was 135 -145 rubles (depending on the type of troops and the position held), a lieutenant colonel 185 - 200 rubles a month, a colonel 320 rubles, a major general (division commander) and an active state councilor - 500 rubles (that’s what I.N received Ulyanov - father of V. Lenin), lieutenant general (corps commander) - 725 rubles per month. Approximately their pensions were close to these figures.

Prices in Russia in 1900 varied greatly between everyday goods and “luxury goods.” So a loaf of fresh wheat bread (400 grams) cost 4 kopecks, a bottle of “official” vodka (0.61 l) - 40 kopecks, lunch in cheap taverns - 10 kopecks (in expensive restaurants 1-2 rubles), cab services - 20 kopecks. , pork meat 30 kopecks per 1 kg., black caviar - 1.8 rubles. (1 kg.), chocolate candies - 3 rubles. (1 kg.), cow boots 5 rubles, apartment rent from 5 rubles. per month (on the outskirts of Moscow) up to 150 rubles. for luxury living space in the center, renting a separate box at the Bolshoi Theater - 30 rubles. for a performance (seat in the stalls 5 rubles), 1 bottle of cognac was estimated from 3 to 100 rubles, a good cash cow 60-90 rubles, a horse 70-100 rubles, a piano 200 rubles, a car 2000 rubles. etc.

For the “common people” pensions and retirement age did not exist at all as concepts. In the villages the community took care of the elderly, in the cities - their families. The average salary of workers was 16-24 rubles, for the labor aristocracy (foremen, foremen) 50-70 rubles. per month.

Tax system

Each citizen pays different amounts to the treasury depending on how much he earns per year. If annual earnings do not exceed 25 thousand euros, income tax will be minimal - 35%. Those who earn 60,000 EU or more per year contribute the most to the treasury; they must give 50% of their income to the state. VAT here is 20%; the duty for inheritance and registration of deeds of gift was abolished back in 2008.

When selling real estate, the state takes 3.5% of the transaction amount, but if the sale is carried out by close relatives, then this figure is only 2%.

Most of the country's population is Catholic, so citizens must pay church tax. Depending on earnings, this is 300-400 EU per year. You can refuse, but such a decision is perceived extremely negatively by society. Such a person cannot go to church, confess, or receive communion.