Wednesday, September 28, 2016

Pension: Without Reform, they receive only 41 percent of their income – SPIEGEL ONLINE

The level of pensions is looming in the next 30 years, a crash by more than six percentage points, if left unchecked. The Federal Ministry of labour, common calculations, according to which the level of pensions could fall by 2045, currently 47.8 per cent of the average wage to about 41.6 percent. “The ongoing slippage of the hedging levels, undermining the trust in the statutory pension insurance and confusion among contributors and pensioners,” it said in government circles. “It takes, therefore, a stop line at the level of pensions.” Similar to labour Minister Andrea Nahles (SPD) had spoken recently at a DGB-event.

With the new Figures submitted to the Ministry of labour for the first time, calculations beyond the year 2030. A Set of pension levels at the current value would mean that the reported expenditure of about 40 billion euros a year. The contribution rate to the pension insurance would have to rise from currently 18.7 per cent to 26.4 per cent in the year 2045. “In this tension field there is a need to make political decisions for a future stabilization of the pension system”, – was stated from the Ministry.

Hope on the operation of pensions

Nahles intends to present in November a pension concept. She currently performs with associations and interest organisations a so-called social dialogue on Pension reform, their approach to prepare. In one of the building blocks, the pensions, the strengthening of the operation, had Nahles achieved on Tuesday with Finance Minister Wolfgang Schäuble (CDU) and the social partners to reach agreement.

want to submit in the next two weeks a draft law. In the interview, tax subsidies, and the possibility of a waiver of guaranteed Pension amounts, in order to increase the spread of occupational pensions. The distribution rate for employees has fallen from 59 per cent in 2013 to 57 percent in 2015. 17.7 million Workers according to government data, company pension scheme, 16.5 million Riester contracts.

The social Association VdK Germany urged to stop the “descent” of the pension levels. “Pension levels must be stabilised at 50 percent, but at least on today’s level, to enable effective protection against poverty in old age,” said President Ulrike Mascher. The Left-pension expert Matthias W. Birkwald asked Nahles, to ensure a pension level of 53 percent. Employees should be able to make a Deposit furthermore, by the first working day of voluntary additional contributions.


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