As of: March 12, 2024, 11:43 a.m
By: Lisa Mayerhofer
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A heated debate has broken out about pension increases and the future of the German pension system.
Economist Monika Schnitzer explains: “We have to work longer and save more for old age.”
Augsburg - In the coming years, the German pension system will be put to the test: more and more people are retiring, while there are fewer and fewer people paying contributions.
The traffic light coalition therefore wants to make pensions future-proof with Pension Package II.
However, economist Monika Schnitzer thinks very little of the federal government's plans.
Pension increase announced in March – criticism of the pension package
With the reforms now proposed, the federal government is sticking to the retirement age and cementing the further increase in pensions with wage developments, Schnitzer told the
Augsburger Allgemeine
.
“As a result, they put a particular strain on the younger generation.”
Monika Schnitzer is the chairwoman of the expert council for assessing overall economic development.
© Bernd von Jutrczenka/dpa
The federal government had previously announced that it wanted to keep the pension level at 48 percent and would also like to finance part of the pensions with the help of the capital market in the future.
This means that the pension contribution rates for employed people should not increase so much.
Federal Labor Minister Hubertus Heil (SPD) had also announced that instead of further increasing the statutory retirement age beyond 67, he wanted to focus on more flexible transitions into retirement.
Financial incentives are also intended to encourage voluntary, longer work in old age.
Heil announced that concrete proposals would be made in the summer.
But Heil wants to announce this month how high the pension increase will be this year.
So far there are only estimates and demands.
According to an official forecast, pensions will be increased by 3.5 percent in 2024. Some experts even expect more due to the good wage development last year, while others are calling for a zero round.
Schnitzer on retirement: “We have to work longer and save more for old age”
Schnitzer, who advises the federal government as chairwoman of the expert council for assessing overall economic development, is also critical of large pension increases.
She demands in the newspaper: “We have to work longer and save more for old age.
At the same time, pensions can no longer be increased as much as before.
This is the triad.
If we turn all three adjustment screws, we can secure pensions without placing too much of a burden on the younger generation.”
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People in Germany have to “make it clear that when it comes to pensions, we can’t just rely on the pay-as-you-go system after the young pay for the old.”
Instead, everyone should save more for their pensions, demands Schnitzer in the
Augsburger Allgemeine
.
The economist from Munich's Ludwig Maximilians University advocated that contributors invest part of their pension contributions themselves on the capital market, for example in stocks.
“In this way they would acquire their own pension rights with high returns.” If the money is invested broadly across many countries and sectors, the returns are very secure.
The pay-as-you-go system is reaching its limits.
Taxpayers' Association does not consider pension package to be sufficient
The Taxpayers' Association also does not consider the pension concept presented by the federal government to be sufficient and still sees open questions.
“Based on the key figures for the pension package, I cannot yet see that the pension system would become more stable overall,” said the President of the Taxpayers’ Association, Reiner Holznagel, to the
editorial network Germany
a week ago .
From his point of view, “more adjustment screws in favor of pension insurance” should also be used.
Holznagel said he was wondering how the permanent guarantee of a pension level of 48 percent could be reconciled with demographic developments.
In addition, the government must answer whether “debt-financed generational capital can actually reduce contributions for employees and companies”.
With material from AFP and dpa