Different countries of the world face a crisis in their retirement systems following the strong change that occurs in demographic pyramids. In this scenario, the German chancellor, Friedrich Merz, sent a message to the youth of his country in which he urged to prepare to regularly invest small amounts in the bag.
“Do not depend on mandatory pension insurance,” The official questioned the youths of his country. According to the German chancellor, save a little for a long period of time “Guarantees a safe pension.”
Problems in retirement systems: the controversial proposal of the German government
For economic or demographic crises (or both), different countries see their pension systems staggered. In this scenario, different proposals arise to alleviate future crises.
Germany has a public pension system that is anchored in a contract Intergenerational – Based on the principle of solidarity – in which the contributions of workers in activity finance the income of pensioners. Its origin dates back to the 50s, when the Birth was greater and minor life expectancy.
However – and as happens in different latitudes of the world – today There are not enough workers who can sustain a population that lives more and more.
Thus, the German Chancellor – through a YouTube video – encouraged children and adolescents between 6 and 18 years to begin to invest small amounts in the bag, in order to have their pensions covered in the future.
In this regard, in dialogue with BBC Mundo, the president of the Leibniz Economic Research Institute (RWI) in Essen, Christoph Sdchmidt, said: “It is financially unsustainable to depend solely on public pensions.”
In that sense, he also said that if there is no private investment, the solution is for the population to accept lower pensions or to work up to 70 years or more. Otherwise, the researcher argued that countries face “a demographic watchmaking.”
On the other hand, the German Metallurgical Workers Union argued that instead of promoting private pension plans based on the stock market, its government should work to strengthen the current public retirement system.
Other proposals in relation to the retirement system
The debate on pensions intensifies year by year and the coalition that governs Germany – integrated by conservatives and social democrats – seeks to advance with a series of specific reforms in pension matters. Among the latest proposals A fiscal exemption is included for those who decide to continue working once the retirement age reached. However, the project soon receives criticism from both unions and business chambers.
The president of the German business association, Steffen Kampeter, said the incentives raised by Executive RThey are ineffective and too onerous for taxpayers. Along the same lines, Anja Skin, leader of the German Confederation of Trade Unions, warned that the rules “It would cost billions, without solving the underlying problem.”
Faced with these tensions, the Government evaluates to form a pension commission that develops viable alternatives. Within that framework, another of the most commented initiatives is registered: a subsidy destined for minors to invest in the capital market, under the tutelage of their parents, accumulating resources that could only withdraw when they reach retirement.
Those who defend this “early start pension” consider that it is not only the savings that children and adolescents generate. The central objective, they explain, It is instilling the culture of stock market investment early, showing how long -term profitability operates and promoting the experience of building a diversified and low -risk portfolio.
Source: Ambito
