Federal government's pension projections face scrutiny from the opposition
In a recent critique, Dietmar Bartsch, leader of the Left Party faction, and Annelie Buntenbach, a long-standing DGB board member and deputy chair of the federal government's social council, have raised concerns over the pension projections provided by the federal government.
Bartsch, in a scathing remark, labelled the projections as "laughable calculations meant to deceive citizens", while Buntenbach specifically criticised the government's assumptions about interest rates in private provision.
The criticisms centre around the belief that the pension level will allegedly rise in the next few years through the Riester pension and other private models. However, both Bartsch and Buntenbach express scepticism, neither showing confidence in the current projections.
Buntenbach, in particular, has criticised the optimistic interest rate assumptions in the federal government's pension projections for the years 2017 to 2024 (2.5%) and the gradual increase to 4.0% from 2030 onwards. She questions the suitability of the additional provision within the three-pillar model of statutory, occupational, and private old-age provision, suggesting it does not provide adequate protection for people.
In light of these concerns, both Bartsch and Buntenbach advocate for a stronger statutory pension system. Bartsch suggests that the federal government should end the partial privatization of pensions and strengthen the statutory pension instead. Buntenbach, on the other hand, emphasises the importance of the statutory pension as it would cover all risks, including incapacity for work, which is rarely covered in occupational provision and almost never in private provision.
Their criticisms were directed towards the "Neue Osnabrücker Zeitung". However, no specific current projection values for interest rates in private pension schemes used by the German federal government, nor their comparison with current market interest rates, are available in the search results.
This debate underscores the ongoing discussion about the future of pension provision in Germany, with many employees struggling to afford either the Riester pension or other private models. The government's social council and opposition parties continue to press for reforms to ensure a secure retirement for all citizens.
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