Are traffic light plans sufficient ?: “Pension is black spot in the coalition agreement”: Ex-economic method for higher retirement age
On Wednesday the SPD, Greens and FDP presented their coalition agreement. As far as the pension is concerned, the SPD was apparently able to prevail. A reason to be happy? Not for the ex-head of the economy, Lars Feld. Instead, the professor criticizes harshly.
Yesterday, after about three months of intensive negotiations, the traffic light parties published the coalition agreement for the coming legislative period. The topic where the SPD in particular wanted to score: The pension.
But what are the new government’s pension plans? And what do experts have to say about it? At the beginning a brief overview of the core issues, the pension plans decided by the traffic light coalition:
- Introduction of partial capital coverage for the statutory pension insurance
- The aim is to secure a minimum pension level of 48 percent
- The amount rates should not rise above 20 percent
- No increase in the retirement age
So far so good. But what do experts think of the package of measures adopted for the German pension system? Lars Feld, the former head of economic wise, the council of experts for assessing macroeconomic development, finds clear words. In an interview with the “Handelsblatt“the Freiburg university professor harshly criticizes the traffic light plans.
Pension is “black spot in the coalition agreement”
While Feld has positive things to say in terms of financial policy, he is less satisfied with the plans for his retirement. In particular, the SPD did its part – without the Greens and FDP would have slowed them down. “What the SPD has achieved is not sustainable,” said the 55-year-old.
Above all, the demographic change worries Feld. With a minimum pension level of 48 percent, a contribution limit of 20 percent and no increase in the retirement age, the ex-economy looks black. The current system of a pay-as-you-go pension could no longer work from 2025.
Field: “Share pension and immigration strategies are not enough!”
In addition, Feld is certain that the targeted share rent and a targeted immigration policy will not solve the problem. “I support both projects, but they will not be enough. Only the catching-up factor helps.”
The catching up factor is due to the pension guarantee. This ensures that when wages fall (e.g. in a crisis) pensions do not have to be cut as well.
Everything you need to know about your retirement
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The catch-up factor then ensures that as soon as wages rise again, the prevented pension cut is compensated mathematically. However, the federal government has suspended the catch-up factor until 2025.
“Now the catch-up factor should apply again, starting next year, so that the pension increase will not amount to 5.2 percent in the west and 5.9 percent in the east, but only about half. That will help the finances of the pension insurance in the next few years four years already, but it will not be enough to put the pension on stable feet in the long term. “
The retirement age must be raised
In order not to postpone the problem just four years, Feld finally finds clear words: “No ifs or buts, the retirement age must be increased.”
The IW Cologne also has similar criticism. The new government’s plans would lack significant room for maneuver to respond to an aging society and the challenges of the pay-as-you-go pension system, which should increase the contribution rate.
That is the coalition agreement
If you use the FOCUS online app, you can access the coalition agreement here.
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