Pension package II: traffic light coalition threatens to break due to higher contributions!

Pension package II: traffic light coalition threatens to break due to higher contributions!

Berlin, Deutschland - In Germany there are currently great tensions about the planned pension package II, which is promoted by Hubertus Heil, the SPD's labor and social minister. While the government is trying to stabilize the pension level to 48 percent of the average wage by 2039, it is already known that the calculations have serious gaps. In particular, the costs incurred by the care contribution were overlooked, which could lead to considerable financial expenses. The warnings of the German Pension Insurance (DRV) are clear: the financial burdens could soon become intolerable, and not only for the pensioners themselves, but also for the contributors.

Currently the care contribution for childless insured persons is four percent of the gross wage and 3.4 percent for insured persons with children. This means that future pensioners have to take on the full contribution, while employed people share these costs. The pension expert Professor Axel Börsch-Supan even estimates that the care contributions could increase up to seven or eight percent over the next 20 years, which the already fragile system continues.

increasing contributions and falling pensions

The problem is reinforced by the fact that the pensions were only calculated according to the gross amounts. The net pensions actually available to the pensioners take into account the deductions by health insurance and care contributions, which will probably increase in the next few years. As a result, the percentage adjustments of pensions have to go beyond wage growth, which means that pensions are endangered for many people in old age.

The government has decided to raise the pension contribution from the current 18.6 percent to 22.3 percent by 2035 in order to meet the increased requirements. This increase will burden employers and employees again, while the DRV points out that additional adjustments could be necessary to keep the pension level. These financial burdens could also lead to a record high in health and nursing insurance contributions, which increases the burden for fellow citizens.

In particular, the young liberals within the FDP are upset about this procedure, as they fear that the younger generation in particular is asked to pay inappropriately. "The pension package shifts the costs massively at the expense of the young generation without solving the underlying problem," said July chairman Franziska Brandmann. This has already led to speculation about possible coalition breaks, as there is great displeasure within the traffic light coalition.

criticism and alternatives

Brandmann calls for the introduction of a “real equity pension” in order to get away from the current financing to smarter, individual solutions. Former July boss Jens Teutrine also supports this and believes that the pension package in its current form is unjust and not sustainable. "The Federal Government must now end its policy of the smallest common denominator," he demands.

These arguments will significantly shape the political landscape in the coming weeks. If the coalition does not find a viable path, not only the controversial pension reforms could be on the brink, but also the entire coalition. It remains to be seen how the Federal Government reacts to the challenges that are imposed on it through the increasing care contributions and the associated financial burdens.

For further information on the effects of pension package II and the associated adjustments, visit the detailed report on www.az-online.de .