4.2 million people in Germany have a full-time job, not enough to live on. Even after 35 years of hard work, slide these people in this country in the old-age poverty. Can help with a basic pension?
It is paradoxical sounds in a rich country like Germany: the “wrong” work is a key cause of Poverty. Because anyone who has worked for 35 years, and only the minimum wage gets, the Ministry expects the labour a state pension of 517 Euro per month. This is much too little to be able to in expensive cities such as Munich, Frankfurt or Stuttgart to survive. For the 4.2 million workers who have worked for their whole professional life in the low-wage sector, is exactly the perspective to provide for their retirement. Often you will have to do then with this money for the rent, food and other things. This is in a country where the private assets in the past year to the record value of 5.977.000.000.000 Euro grow?
Basic pension: a safety net, and appreciation for a work life
The current government of CDU, CSU and SPD had agreed in its coalition contract, that the basic pension should be introduced, to prevent such States. After 35 years of work, there should be a basic pension which is at least ten percent above the Existenzminiums.
The Federal Minister of labour, Hubertus Heil (SPD) has now reignited the debate around these basic pension in Germany. He presented a proposal on how this safety net for long-term Employees should be shaped. Healing want to achieve, that each employee is at least 900 euros a month, if he has completed the corresponding years of work. A means test to be omitted, which will help to save on bureaucracy, according to the Minister. The Minister of labour expects more costs “in the mid single digit billions” to Finance his plans.
“Who has done a lot of work to get a pension, enough to live” – the Minister of labour Hubertus Heil
Ulrich Schneider, managing Director of the joint General Association, holds the idea of the basic pension for a “successful impact”. In an interview with DW, he stressed that the pension, the life power of a human to recognize. “It is not intended in the first place, the prevention of poverty, but must all give the feeling that work is worth it,” says Schneider.
Less flattering reactions from the conservative government partners. You don’t want to be part of a “pension policy with the watering can”, stressed the leading Union politicians. Also, German Chancellor Angela Merkel (CDU), spoke up. She remembered the small coalition partner of the SPD to the fact that in the coalition agreement, the basic pension mentioned, of an unconditional payment without a means test but no speech was.
“Basic pension is a type of repair operation,”
John Geyer, a pension expert at the German Institute for economic research (DIW) in Berlin, at the proposal of the Minister of Labour quite like it. He warns, however, against too high expectations. Many of the justice issues would also exist after the introduction of a basic pension. Entirely new proposals. “In the past, such schemes had very simple names, as it was called minimum wage points, and are not, as justice pension.”
In an interview with DW, Geyer said, but also, the best tool in the fight against poverty in old age remained good wages during the acquisition time. “The basic pension is a kind of repair, so if anything is wrong, then we can fix it at the end of a piece of the consequences of this low-wage career.”
Simple logic: If the wages are enough to live on, remains even more money for their retirement. In the low-wage sector, this logic is undermined
The labour market reforms of the 2000s, burned under the Hartz-4 into the collective memory of the country, Geyer, however, is not for the beginning of this ominous development to more poverty in old age. “According to the data, the low-wage sector has been growing before the introduction of Hartz-4,” says Geyer. The labour market reform Hartz-4, which reduces social security benefits for low earners and the unemployed and structurally have been adjusted, the magnification of the low-wage sector only.
Only fair wages to prevent poor pensioners in rich countries
Ulrich Schneider, managing Director of the joint General Association, calls in an interview with DW, therefore, to address the growing poverty in old age not only with pensions but also with the new labour market concepts. If Germany’s policy in wool, that the salary of full-time jobs to Finance a decent pension, then the minimum wage of nine euros had to be raised to at least twelve or thirteen Euro per hour. “That would be the next logical step,” says Ulrich Schneider.
The concept of the basic pension of the representatives of the welfare Association but for absolutely correct and for “at any time” affordable. Nevertheless, the chances that the basic pension from the current government introduced a constellation of the CDU and the SPD are very low, estimates Schneider. It goes to the Minister of labour, to find his idea is already up to the summer break a law again. The entry into force of might. the law from 1 January 2021. Currently, however, hardly anyone would bet on the fact that the basic pension is in this Form and at this time already in the law.