Demographic factor

The demographic factor is understood to be a socio-political determination of action that is made necessary by demographic change . Colloquially, the term is often incorrectly used synonymously with “demographic change”.

Significance in German pension policy

A demographic factor was taken into account in the pension formula under the 1997 black-yellow coalition as part of the Pension Reform Act. Before the corresponding change could come into force, it was withdrawn by the red-green federal government in 1998. This withdrawal of the demographic factor was described as a mistake by then Chancellor Gerhard Schröder in 2003 .

Since 2004, the sustainability factor has been taken into account in the pension formula as a substitute .