Contribution increase in care to 5.5 % forecast by 2060

06.05.2015 18:13

The contribution rate in social care insurance will increase to 5.5 % by 2060 - with a further upward trend thereafter. This is what the new study by the PKV Scientific Institute (WIP) predicts. It shows the financing problems of pay-as-you-go long-term care insurance and illustrates the increasing gap in care.

The rising contribution rates affect the younger generation disproportionately and lead to a marked injustice in the burden on the generations. Those in employment today finance those in need of care today - without being able to be sure that they themselves will also be cared for in the future. Overall, there is a growing redistribution from younger people to older people in long-term care insurance. This redistribution flow has already increased in the past and will continue to increase.

In order to address the problems sustainably, more capital coverage is necessary. Against this background, the long-term care provision fund introduced in 2015 is a step in the right direction, but it is far from enough. The analysis shows: The design of the long-term care provision fund is not targeted and it is also not sufficiently protected from political interference. The need to cover the nursing care risk to a greater extent with capital funding remains and is even increasing.

The study “Care: The need for capital coverage remains – an analysis of the latest developments” uses current empirical data on the number of insured people and income distribution in order to update the future development of social care insurance.