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Fratzscher Says More Women Working Full Time Could Shore Up Germany's Pension System

Citing systemic barriers, he argues boosting women's full-time hours would raise contributions and ease pension strain over the next 15 to 20 years.

Overview

  • Citing Sunday interviews with the RND, DIW president Marcel Fratzscher warned that Germany’s unusually high female part-time rate is wasting economic potential and weakens the statutory pension system.
  • About half of employed women in Germany work part time, and Fratzscher estimates removing barriers could mobilize several hundred thousand additional full‑time equivalents for the labour market.
  • He singled out four structural drivers that keep women in part time work: too few childcare places, tax rules like Ehegattensplitting, free spousal coverage in statutory health insurance, and the prevalence of low‑hours Minijobs.
  • Fratzscher said higher female full‑time employment would increase pension contributions and could materially ease financing pressure within 15 to 20 years; EU modelling cited by coverage suggests gender equality could raise GDP by up to about 10 percent by 2050.
  • The reports amplify Fratzscher’s call for reform but do not document any immediate government response and note the issue links to Germany’s pay‑as‑you‑go pension design and long‑term demographic decline.