Proposals made by the Commission have been put forth on this matter.
In the heart of Europe, Germany is grappling with a long-standing issue: the financial crisis of its pension insurance system. The political landscape has been marked by decades of complaints about "inevitably decreasing pensions," a reality that is now being brought into sharp focus.
A recent study by Nicole Mayer-Ahuja, a professor of the sociology of work, companies, and the economy at the University of Göttingen, sheds light on the current debates surrounding pensions and the welfare state in Germany. Her research focuses on changes in the world of work, offering valuable insights into the current pension landscape.
The pension distribution in Germany paints a clear picture. Approximately 55.8% of women receive old-age pensions between 600 and 1,500 euros, while about 48% of men fall into this range. However, fewer women (only about 6.4%) receive pensions over 1,800 euros, compared to men, who have an average pension of around 2,230 euros at retirement age. The total number of people receiving pensions over 1,500 euros is not explicitly stated, but the data suggests that men are more likely to fall into higher pension brackets than women at retirement.
Employees in Germany are acutely aware of their reliance on pensions when the market value of their labor decreases. They acquire the legal claim not to be a burden to their children through contributions to pension insurance.
The financial crisis of the pension insurance could potentially be resolved if the state fully took over "insurance-foreign" benefits. This solution, however, has not been without controversy. Governments have been claiming since Helmut Kohl's time that it is intolerable for young people to pay for exorbitant pension benefits, a sentiment echoed by Friedrich Merz, whose statement garnered agreement from a majority of Germans surveyed by Focus Online.
However, there seems to be a low willingness to implement reforms, particularly in regards to pensions and health insurance. This reluctance can be attributed to the fact that "almost everyone is dependent on a pension" - across generations. The call for pension cuts is getting louder, but there is no talk of a "sweet life" in retirement.
Younger generations in Germany are resistant to changes in the pension system, despite knowing that their contributions may not secure a safe retirement. Older people, on the other hand, are increasingly refusing to be pushed out of the workforce, even in the face of decreasing pensions.
The black-red coalition, currently in power, continues to give Sunday speeches about "social cohesion," but their actions may not align with this message. Their approach to the pension crisis is seen by some as stale and divisive, with the black-red coalition not bringing fresh ideas but rather rehashing the debates of the past four decades on the topic of pensions.
There are levers to pull to prevent "inevitable" pension cuts. These include collecting social security contributions from civil servants, well-off individuals, and those with incomes above 8050 euros, as well as pushing back low wages and increasing real wages. A tax-free "active pension" may seem attractive to some, but the vast majority of employees need a reliable old-age security.
In conclusion, the pension crisis in Germany is a complex issue with far-reaching implications. As the debate continues, it is crucial to find a solution that ensures a secure retirement for all, while also addressing the financial sustainability of the pension system.
