social Democrats, trade unions and social associations are excited. It was a “good and wise proposal,” says the head of the AWO Federal Association Wolfgang Stadler. Those who have worked long years, children or relatives cared for raised and pension contributions paid, must have aged more than a means-tested basic security, says Stadler, and is thus in line with Federal Minister of labour, Hubertus Heil (SPD). Healing wishes to introduce a basic pension, which aims to help low-wage earners. The idea: anyone Who has worked a lifetime should have the age more than social assistance. The basic pension, or “respect-pension”, as you with a view on the life performance of the people is called,. the pension of low earners from 1 January 2021. Who can boast 35 years of contribution and less than 80 percent has made of the average earnings, to get a flat-rate appreciation of the covers.
photo: dpa-infographic
What would bring the basic pension?
According to salvation data, workers who have worked for at least 35 years, and only the minimum wage earns get, currently, a pension of about 517 Euro per month. With the new basic pension it will be 900 Euro. The SPD-Ministers in response to the fear of many people, in the social case. 56 percent of German citizens by driving this fear, according to a representative survey by the consulting firm EY at the beginning of the year. However, not only the coalition partners, say scientists: salvation, the pension plan would not change this Dilemma nothing. Because the basic pension has a number of design faults:
error one: no means test
unlike in the coalition agreement, does not want to fix the basic pension depends on whether someone is actually in need of the additional revenue or not. With around four million recipients of the Minister of labour, costs of around five billion euros in the year. Not only the German Chancellor, and large parts of the Union don’t want to join the watering can principle. On the previous basic protection in old age, means-tested, just 300,000 to 400,000 people claim, there is also the retirement expert Bernd Raffelhüschen to bear in mind. “Also the heir to a million assets, or the wife of a well-to-do would benefit the Chairman of the Board, who have worked all their lives in part-time, of the so-called respect of pension”, writes the Economist. From a pension policy accident, says the chief Executive of the employers ‘ associations, Steffen Kampeter. Well-to-do part-time employees could get the basic pension is a reference to “under the pretext of the fight against poverty”.
error two: only on the pension
From the basic pension to look, especially women, would benefit in the West, the low pensions, or men and women in Eastern Germany who had to keep after the turn, with low-paid Jobs. So the average looks of retirement for women in the West, with 622 Euro in the month of miserable. Many years of part-time work or Hausfrauenehen the values press. However, the thing is different, if you pensions the Individual, but the household income to look at. If you take into account the pension of the partner, as well as the income from private and occupational pensions, capital income, rental income. According to the old-age security, report of the Federal government to married couples in Germany reach an average total net income of 2543 Euro in the month, in the case of the single men there are 1614 Euro, with the single women 1420 Euro. However, the discrepancy in the West is likely to be greater than in the East, where households have fewer pensions, and capital.
error three: the rigid limit
Even Economists such as the head of the German Institute for economic research, Marcel Fratzscher, the face of the basic pension is more likely to be positive, to Express criticism of the guidelines. “Someone with 34 years of contribution would arise, for example, as empty as anyone, the pension claims are slightly above the basic pension,” said Fratzscher of the “time”. In fact, the risk that the value of the basic pension, those who are most at risk of poverty in old age, saves: Solo-self-employed, people who are incapable of work, or the long-term unemployed. This is likely to be hard pressed to come to 35 years of Insurance.
error four: loads on the boy move
Who are the pensioners of today, will increase the burden on the younger people. Although the basic pension should be financed not from contribution funds, but with taxpayers money, but the taxes must be paid. Instead of the symptoms fiddling, you should solve the problems in the core, thus Oliver was möller Leibniz Institute for economic research in Halle: wages increase, people will continue to form, so they can find work, and for a reasonable child-care worries.