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Federal Labor Minister Hubertus Heil defends himself against the allegations, with his retirement package he has charged the younger generation with excessive costs. "Should not it be the fundamental promise of being protected in old age, our society for all generations worth something?", Rhetorically asked the SPD politician the conversation with the TV channel "Bayern 2"
. Legal Pension Insurance Coalition will result in additional expenses and revenue deficits up to 2025 by an amount of nearly 32 billion euros. Two-thirds of the expected benefits will be paid by the contributors.
"What is the alternative?" Heil asks. "Abandon the level of pensions, explode the contributions?" Then he immediately denied his own questions. "No, I think it's a sensible choice we took."
In his bill, presented on Friday, Heil made improvements to early retirement and the extension of the maternity pension. and contribution rate. A "level security clause" is to ensure a pension level of at least 48 percent by 2025, based on an average salary. In addition, low-wage workers are exempted from social security contributions without any loss of pension entitlements.
Despite the Court of Auditors' criticism that the pension pact is too costly, Heil considers it the best option for old-age insurance: "The main pillar must remain the statutory pension insurance ", did he declare. Heil responds to the criticism that the Pact on Pensions is detrimental to younger generations: "We take into account the stability of contribution rates and the contribution burden will not exceed 20%."
The experts believe that the plans of the Minister of Social Affairs remain critical. The boss of Ifo Clemens Fuest expressed for example his refusal of the planned extension of the mother-duck. "This is clearly not a measure against the poverty of the elderly, but a redistribution in favor of mothers and to the detriment of contributors and taxpayers," he said "Pbadauer Neue Presse". "If you want to fight poverty in old age, you should increase basic security, that's right."
Fuest also criticized the desired higher support for economically disabled people. "It has nothing to do with justice," he said. "Disability is a risk that affects all of us, and we should all be insured against that risk and pay the corresponding premiums."
- For a Comprehensive Analysis of Government Pension Plans click right here.
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