German Social Welfare Association Condemns Proposal to Link Future Pension Increases to Inflation Alone
The German Social Welfare Association (SoVD) has strongly rejected a proposal to link future pension increases to inflation alone, rather than to the general growth of wages. The association’s chair, Michaela Engelmeier, criticized the idea, saying it would effectively cut pensions and disconnect millions of retirees from the country’s overall prosperity.
Engelmeier responded to a suggestion made by economist Veronika Grimm, who proposed that pension benefits should only rise with the price level, not with wages. Grimm argued that this would ensure the long-term sustainability of the pension system, but Engelmeier countered that this would be a “systematic pension cut” and a step backward in social policy.
The SoVD also rejected Grimm’s proposal to adjust the retirement age to reflect increasing life expectancy. Engelmeier pointed out that many workers in physically or mentally demanding jobs are already struggling to make it to retirement age and that this proposal would ignore the reality of many people’s lives.
The German Social Welfare Association’s stance is a clear warning against what it sees as a misguided and socially unjust approach to pension reform. The organization is committed to protecting the rights and interests of retirees and ensuring that they are not left behind in the face of economic and social change.