Old-age provision - it looks a lot different in Sweden than it does in Germany.
The debate about the better pension model is still ongoing.
What the FDP is demanding in the Bundestag.
Update from February 26, 2021:
The
FDP
in the Bundestag wants to
reform
the
pension *
and introduce a
statutory share
pension
- according to reports, in part based on the Swedish model.
According to
a report by the
AFP
news
agency
(as of February 16), the
proposal by the FDP looks like
this: With a
funded pillar
, the contributors should
benefit
from growth on the international
stock markets
, according to the
AFP
, vice-president Christian Dürr
.
Even today, the contributions to the statutory pension are nowhere near enough to finance the pensions.
The tax subsidy, which is 106 billion euros this year, will continue to grow in the coming years.
The problems with the pension are "one of the greatest dangers for social cohesion".
A reform is also necessary because people can neither be expected to lower the pension level nor to sharply increase contributions.
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Concept of the FDP in the Bundestag: Pension based on the Swedish model?
According to the concept presented by Dürr and the FDP social expert Johannes Vogel, as AFP further reported, two percentage points of the previous pension contribution based
on the Swedish model should
flow
into the publicly administered
share
pension
.
In order to compensate for temporary losses due to the reduced contribution to the statutory pension, a higher federal subsidy should first be paid according to the FDP concept.
According to the report, higher
voluntary contributions
and a switch to
alternative capital investment offers should also be possible
, according to the idea.
FDP wants to supplement old-age provision with statutory share pensions
“
Funded old-age provision
must finally become simpler, more consumer-friendly and, above all, more equity-oriented,” says Dürr and Vogel according to the
AFP
.
The FDP politicians are convinced that
the
statutory share pension
could once again keep the debt brake permanently if the immigration of skilled workers is promoted at the same time.
The
Federation of German Consumer Organizations
(vzbv) welcomed the concept of the FDP, writes the news agency.
"A broadly diversified equity investment ensures more money in old age," said board member Klaus Müller.
"At the same time, risks such as a financial crisis or falling share prices can be cushioned through reallocations."
Old-age provision
in Germany needs a fresh start.
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Ideas for pension reform in Germany: Sweden a role model?
Update from October 14, 2020:
It is said again and again that
Sweden could be a role model when
it comes to
pensions
.
For
Germany
too
?
In Sweden you have a
pension *
made up of three parts: the
state basic pension
, plus the
company pension
- and on top of that there is the private old-age provision.
And it works like this: instead of
relying
on a purely pay-as-you-go model, as in Germany, Swedish employees have to
invest
2.5 percent of their gross income in
pension
funds in
addition to their
pension
, reports the portal
extraetf.com.
What is meant is the so-called funded procedure.
With this contribution, assets should be built up that will later be available to employees when they retire.
While in Germany, in addition to the state pension, another four percent of gross income would ideally flow into the Riester pension,
finanzen.ne
t says, in Sweden it is exactly the 2.5 percent mentioned, which is mandatory for the private one Pension plans would have to be used.
Every citizen can decide for himself what the 2.5 percent of Swedes' gross wages will be used for.
Pension: Is the “Swedish model” also conceivable for Germany?
"In addition to endless suggestions from private providers as to what the capital can be used for, there is also a state alternative," according to the portal.
The so-called state class administration alternative, Såfa for short, builds up a separate
capital stock
for every Swede
, which, to a certain extent, finances part of the monthly pension amounts through regular investment income.
This state-administered pension
fund
primarily invests in
stocks
and funds, but also in
government and corporate bonds
.
Despite the many advantages of the “
Swedish model
”, there are also reservations. The
main point of criticism
goes back to the high risk aversion of German savers, who of course have to live with the given fluctuations in value when investing in stocks.
“For example, the
Swedish AP-7 fund
lost
seven, eleven and 27 percent in 2000, 2001 and 2002, respectively,” says the report on
finanzen.ne
t.
For security-oriented small investors in Germany, such price losses would be an unreasonable expectation.
"Even if the book losses are all made up again, the fear of personal retirement provision increases in such phases," writes the portal.
Model Sweden: Should the pension system in Germany be changed?
Article of September 16, 2020:
Three pillars - less worries?
It is not the first time that some Germans look (sometimes jealously, sometimes extremely critical) of the
Swedish
pension system
.
There is the
pension *
of three parts: There is a
state basic pension
, plus the
company pension
and, in addition, the
private old-age pension
.
Employees there would have to pay 16 percent of their gross income into the state pension system, according to a report on Focus Online (as of October 2019) - it is
pay-as-you-go
like the statutory German pension scheme
.
In addition, 2.5 percent would “compulsorily” flow into old-age provision funds as private old-age provision, which works according to the funded procedure.
In other words, a capital stock is being built up.
The idea behind it is, the report goes on to say, that regular income such as dividends finance the monthly payments - and ideally the capital stock remains untouched.
Would such a (similar) model also be conceivable in Germany?
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Pension system in Sweden - similar model conceivable in Germany?
In Germany, a model called “
Germany pension
” was discussed
a few years ago
.
A current article on tagesschau.de takes up the topic again and describes it as the concept developed at the time "by the economists Knabe and Weimann and the Hessian state government" Since it is possible to deselect the pension at any time, personal freedom of choice is not impaired, "the article quotes Knabe and Weimann. In other words: employees pay into a
savings plan
- unless they explicitly object.
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The debate about the "Deutschlandrente" is not new
How a so-called
Germany
pension could work?
In a report on Welt.de from 2019, the proposals that were much discussed under this name a few years ago were explained, among other things, as follows: According to the idea behind it, Germany could also create a state fund, and every employee who does not explicitly object would one Pay part of his wages into it, so the thought.
The fund would be managed by Deutsche Rentenversicherung - at cost price with no intention of making a profit - so the costs would be extremely low.
The state would also guarantee the payment.
As is well known, nothing has come of this idea to this day.
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Pension debate - criticism of the "nudging" concept
Because there are definitely critics, according to the current report on tagesschau.de, which, with a view to the
pension debate,
recalls the “nudging” concept developed by Nobel
Prize winner
Richard Thaler, according to which a small change can often make a big difference.
The US behavioral economist turned 75 on September 12.
With regard to private retirement provision, however, his concept of "nudging" could be more topical than ever when it comes to poking something new, so the tenor of the article entitled "A little nudge for a larger pension" .
There has never been such a great change in the pension model.
Quite a few would see it as patronizing the citizen, it says in the article .. (
ahu) * merkur.de is part of the nationwide Ippen digital editorial network.
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Sources: Finanz.net;
www.extraetf.com;
Focus, de;
boerse.ard.de;
Welt.de
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