Social: Experts warn of financing problems with the pension

Advisors to Economics Minister Robert Habeck (Greens) warn of financing problems with pensions. In the 2040s, more than half of the federal budget was already threatening to flow into retirement, wrote Eckhard Janeba, Chairman of the Scientific Advisory Board, in a letter to Habeck, citing an earlier report.

This is to be expected if the traffic light coalition of SPD, Greens and FDP sticks to the goal of permanently securing the statutory pension at a level of 48 percent of the average earnings from the contribution years.

The Scientific Advisory Board is a body of scientists that advises Habeck. Janeba’s letter is dated mid-July and was recently published on the Ministry’s website. The “Bild” newspaper had reported on it.

Lindner and Heil want to present plans

Finance Minister Christian Lindner (FDP) and Labor Minister Hubertus Heil (SPD) want to present their plans for a pension reform soon. With the creation of a so-called generational capital, the contribution rate should be stabilized in the long term – this is where shares come into play. According to the Ministry of Labor, the pension level should be permanently secured at 48 percent.

“There is a great danger that this will crowd out the financing of future tasks, such as the socio-ecological restructuring of the economy,” wrote Janeba. The Advisory Board proposes that the pension level should be based on specific groups of people.

The Advisory Board also recommends making early retirement only possible for people with low incomes or health impairments. Pensions are currently being gradually introduced between the ages of 67 and 2030 – but the majority of the population starts to retire much earlier. The “retirement at 63” is “mainly taken up by above-average earners and healthier people,” said Janeba. Among them are many qualified specialists whose early exit from the world of work could further exacerbate the shortage of skilled workers.

Riester pension should expire

In addition, the reform of state support for individual old-age provision should be reconsidered. The current Riester pension, in which the state supports private old-age provision, is to be phased out according to proposals from a government commission and give way to a reformed private pension. Jameda warned that this could result in high administrative costs.

Instead, the Advisory Board called for a strengthening of company pensions, which could be extended to small and medium-sized companies. The consultants appeal to Habeck to emphasize the “long-term macroeconomic perspective” – ​​Germany must also set priorities in social policy in order to maintain and strengthen the productivity of its economy despite the aging of the population.