The Sustainability of the German Statutory Pension System: Demographic Change, Financing and Intergenerational Fairness

Germany’s statutory pension insurance is financed predominantly on a pay-as-you-go basis and faces pressure from population ageing, longer pension receipt and changing employment biographies. This article examines the implications for long-term sustainability and intergenerational fairness using official data from the Deutsche Rentenversicherung, the Federal Ministry of Labour and Social Affairs and the Federal Statistical Office. It distinguishes demographic pressure from the capacity of employment, wages, migration and productivity to strengthen the contributor base. Fairness is assessed across contributions, benefit adequacy, public financing and employment-related health risks. The analysis supports transparent combinations of broader coverage, explicit tax financing, flexible retirement transitions and supplementary funded provision.