The pension system in Germany only works through subsidies.
Pension reform seems unavoidable.
But what exactly should it look like?
is currently being discussed intensively.
calls for a restructuring of
based on the
However, there is headwind
German Pension Insurance
Frankfurt - Half a year before the
, which will take place on September 26th, 2021, the topic of
suddenly finds its way onto the political
The voices for a major
are growing louder.
Some critics do not go far enough with
proposals made by
between the CDU / CSU and SPD
is not sufficient and does not go beyond proposals, it is said.
Part of this included ideas that
contribution rates - but which do not because they have not yet been implemented.
Pension reform in Germany - fund needs billions of tax money as a subsidy
“stop line” agreed
stipulates that the
general pension level
is based on the
There are doubts as to whether the projected level can be maintained, especially since baby boomers from 1955 to 1969 will reach retirement age by 2025.
The cash register is exposed to enormous stress.
In addition, there is a
phase of low interest rates
, which makes
an unsafe undertaking.
The "Tagesschau" reports that the
to be subsidized
every year by billions of euros from
taxpayers' money in
order to withstand the pressure.
This is supposed to be a quarter of the entire federal budget, that is around
100 billion euros
Statutory share pension: FDP warns of over-indebtedness
is one of
the loudest critics of the current
The Free Democrats have been emphasizing for some time that this is an obsolete model.
Germany is threatened with over-indebtedness if it comes to further
That is why the FDP proposes a “statutory share pension”.
Specifically, the party wants to
around two percent of every statutory pension contribution in
In this way, returns from the capital markets could relieve the pension system, it is said again and again.
"We want people in Germany to benefit from growth in the international capital markets," emphasized Christian Dürr, deputy leader of the FDP parliamentary group, in the Bundestag.
Pensioners in Germany
of which women
of which men
Status: 01.07.2020 - Source: German Pension Insurance
are Scandinavian countries,
There, employees are obliged
2.5 percent of
in pension funds.
Citizens can choose between a state fund and other solutions.
This is reported by the Swedish news agency "Tidningarnas Telegrambyrå".
According to the rating agency "Morningstar", the Swedish sovereign wealth fund is said to be one of the best in Europe, especially since it incurs very low annual fees.
the period between 2011 and 2021, the
achieved an average annual return of more than 14 percent, as reported by the “Tagesschau”.
"With the AP7 fund, Sweden is demonstrating how to use the opportunities of stock savings for old-age provision," said Johannes Vogel, FDP spokesman for pension policy, in the Bundestag.
stock market is
into the pension fund there to protect the population.
There, too, employees have to
two percent of
their gross salary - optional, because: The investment is not a must, just an extra income to the regular
The Norwegian sovereign wealth fund benefits in particular from profits from the oil sector.
"The aim of the fund is to invest the money from the oil business in such a way that the state benefits from it in the long term," explains journalist Clemens Bomsdorf. * He has been reporting on the Scandinavian
The current debate is dominated by proposals for pension reforms.
© Karl-Josef Hildenbrand / dpa
Martin Werding welcomes the proposal of the Free Democrats.
He is professor for social policy and public finances at the Ruhr University in Bochum.
"It is an extremely interesting concept with limited risks that ties in with the phase of honest reforms of the noughties," Werding said at the federal press conference.
Werding, which was commissioned by the FDP, shows that a
pension reform based
on the Scandinavian model could even effectively combat Germany's debt into the 2040s, according to the
Statutory share pension as reform: "Model cannot be implemented"
does not only meet with approval.
Gisela Färber, professor at the German Research Institute for Public Administration (University of Speyer), criticizes him - and tells the "Berliner Zeitung": "The FDP model cannot be implemented without massive damage to pensions." Pensioners could generate high returns Achieve in this system only in connection with a
high willingness to take risks
, she emphasizes.
The FDP countered that the risk for contributors through long-term investments is very low.
Immediately before starting the respective
the Scandinavian model provides that the credit should gradually flow into lower-risk investments.
In this way
, it is said
short-term price fluctuations
Instead, Färber suggests that people
work longer in
order to be able to deposit more.
The Federal Government's Pension Commission dealt with this issue very carefully; it is considered a
in the election campaign.
Färber's criticism also shares the
German pension insurance
A statutory share pension would tear a big hole in the pension fund.
warns that in the long term, the investments would mean a lack of important money
Outlook: is a pension reform coming in Germany?
remains to be seen
how intensively a possible
will be debated
In any case, the FDP wants to shape the political agenda with the topic.
It is possible that a comprehensive
- based on the Scandinavian model or not - will be discussed more fundamentally in the coming legislative period than before.
that is currently also affecting many senior citizens is the
. * In this context, an expert accuses the tax offices of “fraudulent deception”.
* fr.de is part of the nationwide Ippen digital editorial network.