The head of the Economic Council, Monika Schnitzer, warns of the pension plans of the SPD. “The SPD always emphasizes that it wants to keep the pensions stable – in fact, it wants to keep the growth of pensions stable” Schnitzer told the “Rheinische Post”. However, this would not be affordable in an aging society. “The pension contribution will then rise from the current 18.6 percent to over 21 percent in 2035 and over 26 percent in 2060.”
The Munich economist warns: “Social contributions already amount to 41 percent, and they need to come down.” She warns of a grand coalition in terms of pensions: “The CDU is just as helpless in pension policy as the SPD. If a new grand coalition were to come about, nothing would happen with pensions. And a pension reform is so needed.”
Instead, the chair of the Advisory Council for the Assessment of the Overall Economic Development suggests capping the growth of pensions: “One option would be to tie the increase in pensions to inflation. Then the real pensions would remain stable.”
Schnitzer reaffirms her demand to raise the retirement age and abolish the early retirement at 63: “Germany should regulate the increase in the retirement age – two-thirds of the additional life time are spent in work and one-third in retirement. The new government should abolish the early retirement at 45 contribution years (retirement at 63). It helps the wrong people. Strongly burdened workers like roofers or nurses often do not even reach 45 contribution years.