Wednesday October 27, 2021
Fear of retirement
Juso boss finds share pensions tricky
The possible traffic light coalition does not want to shake the pension: same level, same entry age. In addition to premium increases, only investments in the stock market can be considered for financing. The Juso federal chairwoman Rosenthal is skeptical, however.
The Juso federal chairwoman Jessica Rosenthal has criticized the discussion about a pension on the stock market. “I think that in part this is a very misguided debate that pretends to solve the pension problem on the stock market,” said Rosenthal on ARD. It doesn’t help to look at the stock market alone. The statutory pension must be strengthened. Rosenthal asked to talk about the wage level. In Germany, for example, compared to Sweden, there is not the same rate of female employment, said the chairwoman of the SPD youth organization.
Under no circumstances should parts of the statutory pension insurance be removed and put on the stock market. “I don’t think it works like that,” said Rosenthal. The Juso chairwoman emphasized that the statutory pension is not dead. Strengthening them is the “only way to let justice come into play”. The share pension could not be the only solution, but an addition.
Criticism of the pension plans of the possible traffic light government came from several economists. “The plan from the traffic light negotiations to keep the pension level and only to increase the contribution rates or tax subsidies would result in the old living at the expense of the young,” said Joachim Ragnitz from the Ifo Institute of the “Bild” newspaper. The pension expert Bert Rürup told the newspaper that the plans are a “fair weather program”. In view of the demographic development and the emerging economic upheavals, they could soon be wasted.
The exploratory paper by the SPD, Greens and FDP provides for the pension level to be secured at 48 percent. Pension cuts are therefore off the table, and an increase in the retirement age is also ruled out. For the first time there should be an entry into a partial fund for the statutory pension insurance. “To this end, in a first step, we will add ten billion euros to the German Pension Insurance Fund from budget funds in 2022,” the exploratory paper says. “We will also enable the Deutsche Rentenversicherung to invest its reserves on the capital market in a regulated manner.”