Pension reform: guaranteed, but at what price for citizens?

Pension reform: guaranteed, but at what price for citizens?

Deutschland - The coalition agreement between the Union and the SPD aims to secure the stability of the pension in Germany. One central element is that the pension level should be kept at 48 percent by 2031. In order to achieve this goal, different measures are planned to address different groups of employees. In this way, employees who have over 45 years of professional experience can retire prematurely in the future. At the same time, the retirement age of 67 is not increased further, which is a relief for many.

In addition, new pension models are introduced. This includes the "early start pension", which enables 10 euros per month for each child up to 18 years into an old-age provision, as well as the "active pension", in which up to 2,000 euros tax-free salary for older employees who are still active are paid. An improved mother's pension is also being planned that ensures women with births before 1992 three full pension points per child.

financing questions and social challenges

The employers' association BDA, however, warns of up to 20 percent of an increase in the contribution rate, which is currently 18.6 percent. The social expert Jochen Pimpertz sees serious financing difficulties that could lead to a persistently high contribution rate. The economy Veronika Grimm also criticizes that the coalition agreement does not offer any future -proof solutions for pension insurance.

The financial efforts to stabilize the pension level could cost billions of euros annually, which are to be raised by tax funds. The forecasts show that the pension level could fall to 46.9 percent by 2030 and may even drop to 44.9 percent by 2045. This could have a significant impact on the pension of future generations and thus initiate a discussion about poverty in old age. The left has already asked to increase the pension level to 53 percent and criticizes the specified level of 48 percent as inadequate.

future of pension insurance

The aging of society at the same time leads to fewer deposits in the pension fund and increasing age references. Therefore, the long -term financing of the pension system is expected to be tricky. A continuous increase in the pension contribution will be forecast up to 19.7 percent by 2027 and 21.2 percent by 2035. This raises questions about the future resilience of the pension insurance and requires a constant review by the pension commission, which should work by 2027.

The topic of old -age provision and the stability of the pension system are not only illuminated by politics, but also by scientists and research groups that develop alternative approaches to consider the financial future. Work like that of Auerbach et al. (1991, 1992, 1994) For generation bookkeeping, new perspectives and help to understand the effects of fiscal politics on savings behavior, which is also important for pension policy. The demographic change and its political implications, as described by Breyer (2015), show the urgency to reform the pension system sustainably and not only act reactively.