The economist Martin Werding speaks in an interview about the traffic light government’s pension policy. He says: “The pension consensus is being abolished. And the costs are borne unilaterally by the young.”
The traffic light is working on getting its pension reform through the authorities. The pension level should certainly be 48 percent, and a share pension should be introduced. The economist Martin Werding has a clear opinion on this project. In an interview with “web.de” he says that this doesn’t solve the pension problems. “The opposite is the case.” With these plans, the traffic light coalition is “leaving the path of pension policy of the last 20 years.”
Werding believes that the costs of demographic aging are no longer being shared fairly between generations. The pension consensus will be “terminated,” said Werding. “And the costs are borne unilaterally by young people.” The regulation is only fair from the perspective of pensioners.
The draft reform is a “further setback on the way to making the pension system demographically resilient.” The traffic light coalition must correct its pension package before it has been decided, Werding told “web.de.”
Werding explains the one-sidedness of the burden as follows: Social security contributions would soon be significantly higher than the previously iron limit of 40 percent of gross wages. At 43, 44 percent. “That’s a huge difference,” says Werding. And further: “I miss respect for the contributors”.
More contributors are needed, says Werding. He is primarily focusing on “higher participation of women in the workforce” and “more qualified immigration”. But Germans would simply have to prepare to work longer. The retirement age should rise “slowly and according to rules,” Werding told “web.de”. In plain language: If life expectancy increases, the retirement age also increases proportionately.