Ahead of the Federal Cabinet’s decision on Pension Package II, which is due to be made on Wednesday, Labour Minister Hubertus Heil once again stressed the importance of a stable pension level.
“It’s not about anything. It’s about security in old age,” said the SPD politician on Wednesday in the ZDF “Morgenmagazin”. “It is important that all generations can rely on it, not just the grandparents and today’s pensioners, but above all the employees and also the younger generation.”
After months of wrangling, the Federal Cabinet intends to launch the second pension package proposed by Labor Minister Hubertus Heil (SPD) and Finance Minister Christian Lindner (FDP) this Wednesday. The reform is intended to keep the pension level at 48 percent until at least 2039. The aim is to ensure that pensions do not develop more slowly than wages in Germany in the future. On the other hand, the government wants to use federal funds to build up what is known as generational capital – in other words, to invest money in the stock market.
“If there is a wage increase, then it is also right that pensions follow suit a year later,” said Heil. “If we do not do that, if we do not secure the pension level, then we will decouple the purchasing power of pensioners from wages. And that is not fair.”
They also want to ensure that people can work longer voluntarily. “What we need are flexible transitions into retirement. That is also right. But anyone who has completed 45 years of insurance will continue to retire at 64 or 65 without any reductions,” Heil assured.
“That is exactly the right thing for these people in these times, because they have paid into the pension insurance scheme for 45 years. They have worked for a very long time and worked hard,” said SPD federal chairwoman Saskia Esken on Deutschlandfunk on Wednesday.
Adjustments must also be made to combat the shortage of workers. “We must ensure that more women can work full-time. We must strengthen the family infrastructure, education and care (…). And we must ensure that the professions where we have a high shortage also receive immigration,” said Esken.