Traffic light dispute over budget: FDP shakes up pension at 63

Germany Traffic light dispute over budget

FDP is shaking up the pension at 63

“Pension at 63 will only be available to low earners in the future,” demands Djir-Sarai

There is a dispute at the traffic lights about pension package II. The FDP criticizes the possible increase in pension contributions by 20 percent. Secretary General Djir-Sarai also calls in “Bild am Sonntag” for pensions at 63 to only be granted to “low earners” due to the shortage of skilled workers.

FDP General Secretary Bijan Djir-Sarai insists on a “fair and objective” debate in the traffic light government’s pension dispute. His party is thinking loudly about granting pensions at 63 only to low earners. The Chancellor strikes a completely different tone.

AIn view of the dispute in the federal government over pension package II, FDP general secretary Bijan Djir-Sarai has spoken out in favor of restricting pensions at 63. “The statistics show that retirement at 63 takes valuable skilled workers away from the labor market,” said Djir-Sarai to “Bild am Sonntag” (Bams). In view of the shortage of skilled workers, “politicians must conduct the debate fairly and objectively,” he added. Anyone who wants to work longer should be able to do so “under attractive conditions”.

The social policy spokesman for the FDP parliamentary group, Pascal Kober, told “Bams” that retirement at 63 is “very expensive” and is damaging to the labor market. He continued: “This must now be incorporated into the parliamentary discussions on pension package II. Because it is clear: pension costs must come down.”

Max Mordhorst, who represents the FDP in the Finance Committee of the Bundestag, told “Bams” that it is “conceivable” that “pension at 63 will only be possible for low earners in the future.” In the medium term, it will have to be abolished completely. “We shouldn’t afford such demographically absurd election gifts,” said Mordhorst.

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Completely different tones come from the Federal Chancellor: Olaf Scholz said on Saturday at a panel discussion organized by the Editorial Network Germany (RND) in Potsdam that he did not want to cut corners on pensioners. The new budget should not “be at their expense,” said the SPD politician. He rejected the proposal for a higher retirement age, calling it “absurd.” This is “not the right way to restructure a budget.” FDP parliamentary group leader Christian Dürr had previously advocated for a flexible retirement age and was criticized for his comments about working at the age of 72.

Scholz emphasized: “It is very clear to me that one thing is important for our country, namely that we do not question social cohesion.” The FDP, on the other hand, calls for a “generationally fair budget policy”. Young people should not be overwhelmed when it comes to financing pensions, the Free Democrats emphasize in a five-point paper that is to be decided by the party’s executive committee this Monday and from which the German Press Agency quoted in advance.

“Disincentives” through pension at 63 and citizen’s benefit

The Liberals emphasize in the paper that earning comes before spending. The federal budget must be a relief budget that strengthens companies and skilled workers and enables them to create new prosperity. “If we do not succeed in this, we will no longer be able to be one of the largest donors internationally, e.g. B. include development aid.” The social systems need to be reformed. The pension at 63 and the citizen’s benefit in its current form create false incentives that Germany cannot afford.

Corrections are also necessary to the statutory pension system. The FDP is renewing its call for a genuine stock pension based on the Swedish model with individual accounts for contributors and the right to a funded additional pension.

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The Ministry of Labor led by Hubertus Heil (SPD) and the Ministry of Finance led by Christian Lindner (FDP) agreed in March to partially fund the statutory pension insurance. The pension level is to be set at 48 percent for the period after 2025 to 2029. The contributions are expected to increase in the medium term, to 22.3 percent by 2035.

However, there have been calls for improvements from the ranks of the FDP for a long time. The FDP parliamentary group in the Bundestag had announced that it would not approve the pension package in its current form in the Bundestag. She calls for a smaller increase in pension contributions from 2028 and an expansion of the so-called stock pension.

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