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Economist Schnitzer: Further increase in pensions cemented

Photo: Sven Simon / IMAGO

The economist Monika Schnitzer has criticized the federal government's plans to reform the statutory pension.

With the reforms now proposed, the federal government is sticking to the retirement age and cementing the further increase in pensions with wage developments, Schnitzer told the “Augsburger Allgemeine”.

“As a result, they put a particular strain on the younger generation.”

Schnitzer is chairwoman of the Advisory Council for the Assessment of Overall Economic Development, which advises the federal government.

She demands that people in Germany work longer and save more for old age.

At the same time, pensions could no longer be increased as much as before.

»That's the triad.

If we turn all three adjustment screws, we can secure pensions without putting too much of a burden on the younger generation," Schnitzer told the newspaper.

The economist from Munich's Ludwig Maximilian University also advocated for contributors to invest part of their pension contributions on the capital market themselves, for example in stocks.

"This would enable them to acquire their own pension rights with high returns."

The federal government had previously announced that it wanted to finance part of the pensions with the help of the capital market in the future.

Federal Labor Minister Hubertus Heil (SPD) had also announced that instead of further increasing the statutory retirement age beyond 67, he wanted to focus on more flexible transitions into retirement.

Financial incentives are also intended to encourage voluntary longer working in old age.

Heil announced that concrete proposals would be made in the summer.

The German Federation of Trade Unions (DGB), on the other hand, rejects financial incentives for longer working hours in old age.

»We oppose false demands to exempt older employees from taxes or social security contributions.

This only takes money away from social security and public budgets,” said DGB board member Anja Piel to “Welt am Sonntag”.

mik/dpa AFX