Pension: traffic light plans cause severe criticism from economists: "Unsatisfactory, contradicting, not working"

The exploratory paper by the SPD, FDP and the Greens is causing unrest among economists.

Above all, the pension plans are causing criticism from economists.

Berlin - Even during the federal election campaign, the pension was a hot topic *.

This has not changed after the election.

A traffic light coalition of the SPD, FDP and Greens is becoming more and more likely.

The relevant coalition negotiations could start this week.

The cornerstone of this is a twelve-page paper * that the three parties published after exploratory talks.

The passages on pensions contained in the exploratory paper cause criticism from economists.

Because it says under the point “Making social security citizen-friendly”: “We will therefore strengthen the statutory pension and secure the minimum pension level of 48 percent.

There will be no cuts in pensions and no increase in the statutory retirement age. " 

Economists criticize traffic light plans for retirement: not promising

That was "unsatisfactory and contradicting," said Michael Hüther to the

.

“This challenge cannot be adequately met in this way,” said the director of the Institute for the German Economy (IW).

Ifo boss Clemens Fuest * also criticizes the announcement.

That is “anything but promising”, because “these pension resolutions are not compatible with sustainable financial policy.

The pension reform is apparently simply postponed. ”In view of the demographics, it could not work“ to set the pension level at at least 48 percent and at the same time not want to touch pension cuts and the entry age ”.

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Clemens Fuest, President of the Munich Ifo Institute, criticizes the pension plans of a traffic light coalition

© Kay Nietfeld / dpa / picture alliance

Economists criticize traffic light plans for retirement: Contributors can expect a lot

The exploratory paper also states that the entry into partial funding should stabilize the pension level and pension contribution rate.

In addition, the Deutsche Rentenversicherung should not only receive ten billion euros as capital stock in the coming year 2022.

It should also be able to invest its reserves in a regulated manner on the capital market. 

But this is too hypothetical for Fuest.

So far, politicians have always set stop lines for pension contributions.

Because how the contribution rates are to be stabilized in the long term by entering into a funded fund is unclear.

"The contributors can expect a lot," says Fuest, according to the

.

And that, although the ancillary wage costs in Germany are already very high.

Economists criticize traffic light plans for the minimum wage: regulatory policy questionable

The economists are also not responsible for the increase in the minimum wage to twelve euros announced in the exploratory paper.

Hüther calls this "questionable in terms of regulatory policy".

The intervention not only undermines the social partner commission, which is generally responsible for determining the minimum wage.

It also stands in contrast to the planned new experimentation rooms in the world of work and better incentives for mini-jobs.

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List of rubric lists: © Kay Nietfeld / dpa / picture alliance