Germany’s Generational Burden

One of the Worst in the EU


 
Germany’s working-age population has been shrinking over recent decades due to its fertility rate remaining below the replacement level. And as the elderly live increasingly longer lives, there is a decreasing number of taxpayers able to support the ever-growing number of dependent retirees.

In 1950, each German retiree was supported by the taxes of at least seven workers. But by 2050, it is projected that there will be only two workers supporting each retiree, in addition to ordinary Government taxes. This is an increasingly unsustainable – and unprecedented – generational tax burden on the working population of Germany.

Number of Workers to each Dependent (65+) in Germany and across the EU
The working-age population represents those aged 15 to 64. Period: 1950-2050.
Germany’s Generational Burden




Note: The EU average is calculated by summing the number of workers to dependents in each EU country and then dividing by the total number of countries (27).


Although this is a problem for many developed European nations, Germany has been at the forefront of this disastrous demographic trend, as can be seen in the chart above. It is projected to continue to be below the EU’s average ratio for a whole century.

The reality of this demographic shift is emerging now due to the gradual nature of population change. Without drastic Government intervention, such as allowing massive immigration, Germany’s working-age population will continue to shrink, and the cost for each German taxpayer is likely to continue to rise. This is because retirees cost Governments the most out of any age demographic due to expensive medical and care provisions. Estimates suggest that retirees cost the Government three times that of working-age people in terms of annual spending.

The declining number of taxpayers available to support the rising number of expensive-to-maintain, non-working retirees will mean the tax burden on the working population of Germany could soon become overwhelming.

More for subscribers:  
See more...See more data for Germany...
See more...See more data for the European Union...
See more...See more 'Number of Workers to Each Elderly Dependent' data...




More perspectives using World Economics data

Dangerously Misleading Debt Data
Dangerously Misleading Debt Data
Debt poses a serious problem in most developed countries, and in many developing ones. But statistical omission and obfuscation hide the true problem. Rapidly rising numbers of old age dependants plus unfunded pay-as-you-go social security schemes are already causing unrest. More is likely to follow as state backed promises of medical and old age support become impossible to fulfil. The problem is fa...
NATO Less US Defence Spend Imbalance vs. Russia
NATO Less US Defence Spend Imbalance vs. Russia
Today's chart looks at actual defence expenditures of NATO countries combined, and at the change when the US spend is excluded from the NATO total, plus a comparison with Russia. It should be remembered that not all defence expenditure is directed towards the Ukraine. But as the chart shows, NATO is much reduced in size in comparison with Russia when US expenditure is excluded. The balance of power st...
8 Billion
8 Billion
The World's population is estimated by the United Nations Population Prospects database to have reached 8 billion people, and to be on target for 9 billion in 15 years, and 10 billion in 50 years-time. Data: UN Population Prospects Database, Median Total Population. These numbers have been presented by the media as factual. For example, the Financial Times report said " The world’s population rea...