Germany’s Generational Burden

One of the Worst in the EU


 
Germany’s workforce has been shrinking over recent years, like many countries in the EU, due to its falling fertility rate [subscriber only: The EU Faces Serious Depopulation, Starting Now].  As retirees live increasingly longer, and there are fewer working-age taxpayers to support them, a generational tax burden is emerging.

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).


Without drastic Government intervention, such as allowing mass immigration, Germany’s working-age population will continue to shrink [subscriber only: Without Migration the Workforce of Many Countries will Dramatically Shrink]. This demographic trend will become increasingly unsustainable, because the 65+ age cohort cost Governments the most out of any age group [subscriber only: ‘The Alarming Cost of Aging Demographics’]. This is leading to an unsustainable generational tax burden on the German workforce.

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More perspectives using World Economics data