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Because of the big pension increase: FDP warns of collapse - CDU insists on reform

2024-03-20T21:42:52.523Z

Highlights: Because of the big pension increase: FDP warns of collapse - CDU insists on reform.. As of: March 20, 2024, 10:27 p.m By: Alexandra Heidsiek CommentsPressSplit Only the pensioners are happy: The FDP is worried after the pension increase was announced. The Junge Union even sees an attack on their generation. The pension level is the link between pension payments and the average German salary. If the average salary - and thus the contribution rate - increases the pension also increases.



As of: March 20, 2024, 10:27 p.m

By: Alexandra Heidsiek

Comments

Press

Split

Only the pensioners are happy: The FDP is worried after the pension increase was announced.

The Junge Union even sees an attack on their generation.

Berlin – The pension increase announced by Labor Minister Hubertus Heil (SPD) is causing dissatisfaction among the FDP and CDU.

There should be 4.57 percent more for pensioners in East and West from summer 2024.

Cost: 15 billion euros.

How will this be financed?

The two parties have different proposals for this.

FDP wants to “make retirement more flexible”

“A secure pension is the foundation of our social market economy,” said FDP parliamentary group leader Christian Dürr in an interview with

Bild

on Wednesday .

That is why we should talk about “making the retirement age more flexible”.

Those who retire later should receive more pensions - the FDP wants to make retirement after 67 more attractive.

The stock pension should also help: the federal budget is making 200 billion euros available as a loan for a capital stock.

The pension plus doesn't just bring joy © Julian Stratenschulte/dpa

However, that is not enough for FDP parliamentary group deputy Christoph Meyer.

“An economic turnaround for more economic growth” would be needed in order to be able to finance the social system in the long term.

Private pension provision also needs to be improved.

“We urgently need to reform social insurance and make it more efficient,” Meyer told the

Tagesspiegel

.

Germany's social contributions could rise to 50 percent

The CDU also sees a need for reform.

Union parliamentary group vice-president Mathias Middelberg told the

Tagesspiegel

: “In an honest reform of the pension, all adjustment screws must be included without taboo: working hours, pension level, contribution amount, subsidies from the federal budget, but also state-funded private provision.” Johannes Winkel, head of the Junge Union, sees it In the traffic light pension policy there was even an “attack on the young generation,” as he told

Bild

.

On March 12th, the traffic light presented the pension package II.

This includes two important points: setting the pension level at 48 percent and the introduction of generational capital.

Heil had always emphasized that with him there would be no increase in the retirement age.

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The pension level is the link between pension payments and the average German salary.

If the average salary - and thus the contribution rate - increases, the pension also increases.

The Confederation of German Employers' Associations predicts that with Pension Package II social contributions will rise to 50 percent in the next 15 years.

Because Germany's society is aging and the baby boomer generation will soon reach retirement age, this will put a particular strain on the younger generation.

(uh)

Source: merkur

All news articles on 2024-03-20

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