As of: March 5, 2024, 4:21 p.m
By: Amy Walker
Comments
Press
Split
The traffic light government wants to stabilize the statutory pension with a new law.
When presenting the law, he has clear words for critics: There will be no abolition of early retirement.
Berlin – Labor Minister Hubertus Heil (SPD) does not want to tackle the statutory retirement age, he has already emphasized this several times.
This was the case again on Tuesday (March 5th), at the presentation of the federal government's pension package II.
“It is clear that people who have paid into pension insurance for 45 years and are now turning 64 can retire without any deductions.
Much more important than a debate about increasing the retirement age is the debate about people being able to work longer,” Heil told the media.
There are many people who can no longer work and for whom reaching the statutory pension of 67 will be difficult, emphasized Heil.
Pensions at 63 are mainly used by high earners
However, the Minister of Labor is met with criticism for his position, particularly from business.
It was only at the weekend that economist Veronika Grimm commented on the topic again: The economist recommended that pensions at the age of 63 should at least be restricted.
“Early retirement without deductions should be possible if there are health reasons.” Currently, the pension at 63 creates an incentive for many people to retire earlier, whether with or without deductions.
“High earners in particular make use of it.
This exacerbates the shortage of skilled workers.”
It is not easy to prove that the latter is the case - but a study by the German Economic Institute (IW) in Cologne from 2022 tried to do exactly that based on the average income of people who take early retirement.
The results of the study show that “people with an average needs-weighted net household income take advantage of the deduction-free 'pension at 63' more often than other income groups.” Those with higher incomes, on the other hand, would more often accept deductions and thus retire earlier , the economists continued.
Lower income groups, on the other hand, would more often “forego early retirement for economic reasons, even if this were possible without having to accept deductions.”
A study by the Ifo Institute from 2018 also came to the conclusion that the “pension at 63” is “used primarily by men, skilled workers and people with recognized professional qualifications”.
People with low incomes do not need a pension at 63
It is therefore apparently incorrect when Hubertus Heil says that people in nursing professions, construction or other physically demanding professions need the option of early retirement.
Due to the lower salaries in these professions, they are apparently more often forced to work longer than they should.
In cases where this is not possible for health reasons, the disability pension also applies.
Finance Minister Christian Lindner (l) and Labor Minister Hubertus Heil present their pension reform package in Berlin.
© Michael Kappeler/dpa
For this reason, so many pension experts now publicly express the opinion that the tax-free pension at 63 should be abolished or at least adjusted.
My news
GDL paralyzes Germany with merciless strike announcements
Traffic light law on pensions: From 2028, employees will have significantly less net from the gross reading
“Mega pension increase” for pensioners in 2024: expert predicts good prospects
Pension increase in summer 2024: Heil gives the first forecast for pensioners
Management by Benko: Untraceable protocols, very high wages and a consulting contract for yourself
Germany's “best mechanical engineer” is based in Baden-Württemberg
The SPD is resisting this - especially Minister Heil: "There is no longer any pension at 63, the entry age for those who have been insured for a particularly long time is over 64 and will rise to 65," he said at the beginning of the year.
“Anyone who has worked for 45 years has the right to retire earlier without deductions.
“I won’t be able to retire at 70, as many conservatives want,” said Heil.
So as long as he is Minister of Labor, it will probably be difficult to abolish it.