Why we should work a lot when we are young

Working 40 hours a week – and then maybe a part-time job? Many young people categorically reject this attitude. With a view to the pension gap and old-age provision, we should work a lot, especially in the younger years. A comment.

Pension gap: working full-time? How unattractive is that!

#WorkHardPlayHard: A few years ago, this hashtag was still the motto of the younger generation. At that time, people with an affinity for technology and social media were entering the job market and a new energy seemed to be gaining ground.

But those times were a long time ago – and that’s not fundamentally wrong. Young employees pay more attention to themselves and their own (mental) health. The consequence of this is that people work later and less.

Long study, year abroad and then 20 hours per week, please!

Completing your studies within the standard period of study no longer seems particularly attractive. Instead, there is at least one year abroad during your studies and one more afterwards – and why not explore the world after school?

And when the offspring is then ready to start their professional life, the realization grows that more free time would also be nice. Accordingly, it then starts with 20 or 30 hours per week. It’s still possible to top up.

The pension gap is real – and a real problem

What is problematic about this relaxed attitude can be summarized in simplified form under the term pension gap. But what is behind it?

Hannoversche Versicherung, for example Are defined the pension gap as “the difference between the last salary as a working person and the money that one draws as a state pension.”

Or to put it another way: It’s about dealing with your own retirement provision in good time. Because when retirement age is approaching and financial resources are scarce, unpleasant situations threaten.

The standard gross pension in Germany is just under EUR 1,600

Unfortunately, retiring at 60, 63 or 67 is only an option for all those people who can afford to retire earlier or as planned because they have enough money.

The view of the current standard or corner pension shows: the pension gap is a real problem. According to this, in July 2022 the standard value in western Germany was 1,598.40 euros gross and in eastern Germany 1,620.90 euros gross.

The calculating institutes assume that every employee has worked for 45 years and has earned the average income in Germany. By the way: From the values ​​mentioned above, just under ten percent are then deducted for health and long-term care insurance.

Work more – as long as it (still) works

That’s why career starters and newcomers to the job market should start thinking about it early on. How do I finance my life in old age? In addition to insurance or passive income from dividends, the extra work factor also plays a role.

What does that mean? Especially in the period between 20 and 35 years we are relatively free and unbound in our lives. The studies or training are completed, our health is in the prime of life and children usually only come from the age of 30.

Pension gap: Prevention is better than aftercare

We should use this phase of maximum performance. We should work 40 hours. At least. Why not also work as a freelancer, build up a digital business or take a part-time job on a 520-euro basis?

Every additional euro that we pay into the pension fund, and every euro that ends up in our bank account or in our share portfolio when we are young, will help us in old age. We must always be aware of this fact.

With two children or from the age of 45 or 50, it is difficult to work additional shifts or to pursue a sideline after your main job in the evening. That’s why we should seize this opportunity at a young age – while we still can.

(Also) Burnout is real

With all the optimism that I want to spread, I don’t want to forget one thing: everyone only lives once. This life largely depends on our health. Therefore, any physical warning signals should be carefully observed and recognized immediately.

No money in the world will help you if you suffer from burnout and are neither mentally nor physically able to enjoy your life (with your loved ones). The highest rule is therefore always: Your own health always has the highest priority.

This article is a comment. This type of text contains the personal opinion of the author and does not have to be objective. Nor does this opinion necessarily represent the opinion of the entire editorial team.

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