Pension reform: “At least 45 years”: Klingbeil guide desires to hyperlink pension to years of contributions | EUROtoday

Economist and authorities advisor Jens Südekum has specified his plan for linking pensions to contribution years. “The goal remains an effective extension of working life. In this respect, it would have to be at least 45 years,” stated Südekum in an interview with the “Neue Osnabrücker Zeitung”. “I expect the Pension Commission to make appropriate calculations and make suggestions. In the end, of course, setting a year is a matter for politicians.”

The idea of the non-public financial advisor to Federal Finance Minister Lars Klingbeil (SPD) grew to become public in December. “I propose replacing the rigid age limit for everyone, which some would like to raise to 70, which would widen the equity gap, with a fixed number of years of contributions,” Südekum instructed the newspaper. “Only those who achieve this should be able to retire without deductions. Some would achieve this before the age of 67, some only later.”

Südekum: Equivalence precept for pensions stays

The economist rejected the accusation that he wished to punish lecturers. “It’s not like that at all,” he stated within the interview. The so-called equivalence precept would additionally stay in place. “The pension amount depends on the amount of payments or pension points collected. Years of training and the standard period of study, but also times spent raising children or caring for relatives, could be taken into account as usual, for example to improve the situation for women.”

Anyone who desires to cease earlier can accomplish that, however must dwell with reductions of their statutory pension. “If you earn well thanks to your studies, you can also make private provisions much more easily,” stated Südekum.

A inflexible retirement age, which is presently 67, is problematic for 2 causes. “On the one hand: Anyone who starts at 17 has to work hard for five decades until 67. Long-term students may only work for 30 or 35 years until the normal retirement age,” stated Südekum. Secondly, folks with greater incomes – and these are often lecturers – dwell considerably longer on common than individuals who work bodily. “Higher earners not only pay into the pension fund for a shorter period of time, they also receive their pension for significantly longer.”

When requested whether or not he anticipated his proposal to have an opportunity of being carried out, the economist instructed the “Neue Osnabrücker Zeitung”: “Yes, of course. And I have actually never received so much positive response, so many grateful and appreciative letters and emails, as I did to this proposal.” And “mainly from people who haven’t studied”.

The economist believes that the proposal will not be too difficult. “Questions of protection of existing assets would have to be clarified legally. But if the government has the courage to take new paths, I don’t see any insurmountable hurdles,” stated Südekum. “Then it can be done in this legislative period.”