Economics: Veronika Grimm wants to restrict “pension at 63” – Economy

The economist Veronika Grimm has advocated that “retirement at 63” should only be possible for people with endangered health. “Early retirement without deductions should be possible if there are health reasons,” the economist told the newspapers of the Funke media group (Saturday). The current regulation on “pension at 63” creates an incentive for many people to retire earlier, with or without deductions. “High earners in particular make use of this. This exacerbates the shortage of skilled workers,” complained Grimm.

The then coalition of the Union and the SPD introduced early old-age pensions without deductions from 45 years of insurance in 2014. When it was introduced, the government forecast around 200,000 applicants annually – the forecasts are significantly exceeded year after year. Employers, the Union, but also politicians from the Greens and FDP had spoken out in favor of moving away from the “pension at 63”. Labor Minister Hubertus Heil (SPD) has rejected such demands. Grimm criticized that “many pension gifts” had been distributed in recent years. This is one of the reasons why the federal subsidy for pension insurance increased from 77 to 112 billion euros annually between 2003 and 2021. The baby boomer generation is now approaching retirement. Grimm demanded that the retirement age should be adjusted to life expectancy.

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