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Economics Minister Habeck: “everyone would have more of it”

Photo: Liesa Johannssen / REUTERS

In the debate about the future of pensions in Germany, Federal Economics Minister Robert Habeck (Greens) spoke out in favor of more financial incentives for people who continue to work after retirement age.

"In this way, the employer's unemployment and pension shares could be paid out as an additional fee," said Habeck on Thursday on the RTL/ntv program " Frühstart ".

“Then it would become even more financially worthwhile to work longer and everyone would get more out of it.”

Employed old-age pensioners no longer have to pay contributions for pension insurance - but employers now pay the same amount of contributions for them as for employees subject to pension insurance.

When it comes to unemployment insurance, there is also insurance and therefore freedom from contributions once you reach the standard retirement age.

However, the employer also has to pay his share of the contribution here.

Habeck said that by paying out employer contributions as an additional fee, those who wanted to work longer would be able to “earn a lot.”

The experience of these people would be retained in the labor market.

“We can really use that at the moment and nobody loses anything,” says Habeck.

However, Habeck does not want to lead a debate about a changed retirement age.

The retirement age is politically clearly regulated and will not be changed.

“There are also professions (…) where you are broken after many years, and you shouldn’t put pressure on yourself to have to work longer,” said the Economics Minister.

Where there is willingness, it should not be punished but encouraged.

There are different views on working life in the coalition.

Labor Minister Hubertus Heil (SPD) recently emphasized when presenting the government's pension package on Tuesday: "There will be no reduction in pensions and no further increase in the retirement age." With regard to demographic change, Lindner said: "Financing the pension is and remains a permanent task." According to the FDP leader, working life must be extended, "but that should not be discussed and decided here and now."

The head of the ifo economic research institute, Clemens Fuest, had also called for a longer working life, based on the increase in life expectancy.

Germany's employers have been pushing for such a step for a long time.

With their reform plans, Heil and Finance Minister Christian Lindner (FDP) want to respond to the expected transition of the baby boomer generation into retirement.

In order to prevent pensions from sinking despite more and more people receiving them and fewer people paying in, the pension level should be fixed.

In addition, a capital stock of 200 billion euros is to be built up from federal funds, the income from which will be used to mitigate the future increase in contributions.

The pension package should now be decided by the cabinet and then passed by the Bundestag before the parliamentary summer break.

mik/dpa AFX