GERMANY - Germany's state pension system is set to post a €16bn (US$20bn) surplus at the end of this year, according to a government report.
In addition, employee contributions into the country's public pension scheme are expected to be lower in 2012 because of the rising reserves. Current contributions stand at just under 19.9% of gross income.
A cutback in retirement savings had been anticipated to come into effect from 2011, but the report explained the date had been put back following a rise in retirement income levels greater than predicted.
However, it warned the good news would not last forever, as contribution levels would inevitably have to rise again - forecast to be no higher than 20% in 2010 and 22% in 2030.
The report also showed that senior citizens in Germany were generally well supplied and said statutory pension insurance remained the most important aspect of the pension system.
It found when retirement income in old age was added to the benefits from pension schemes, total retirement income reached an average net total income of €2,271 per month for couples in 2007.
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