Maintaining Pension Levels Advocated by Socialist Senator in Berlin
Berlin's Social Senator, Cansel Kiziltepe, has spoken out against proposals to lower pension levels in Germany, viewing it as a drastic reduction through the back door. Instead, Kiziltepe suggests alternatives that focus on maintaining pension stability without benefit cuts.
Kiziltepe supports maintaining the current pension level of 48% until 2031, a decision that has been made by the government through a recent cabinet decision. To achieve this, she proposes increasing pension contributions modestly, extending the pension "holding line" that guarantees 48% of net income as pension, and enhancing benefits such as the "mother’s pension" for parents who took time off to raise children.
Other proposals include expanding full-time employment opportunities, especially for women, improving labor market access for migrants, and restructuring private retirement schemes to be more effective. These changes aim to broaden and strengthen the labor market participation, thus sustaining the pension system without lowering pension payouts.
However, Kiziltepe did not provide specific details about the employment insurance scheme she proposes. It is also unclear what specific criticisms economist Veronika Grimm made regarding the 48% pension level, as the article does not provide any details about these criticisms.
Meanwhile, Federal Minister of Economics Katarina Reiche (CDU) has proposed raising the retirement age to 70, but it is unclear whether this proposal has been officially approved or is still under consideration. Kiziltepe believes that raising the retirement age to 70 is unattainable for many physically demanding jobs, such as care work or roofing.
The pension package, which includes better pensions for millions of mothers, will be financed from the federal budget in the billions. The specifics of this decision were not detailed in the article.
The article also highlights the high share of people in old-age poverty in Germany, a concern that Kiziltepe addresses in her proposals. She believes that lowering the pension level is not the only way to stabilize the pension system.
[1] Source: Berliner Morgenpost [2] Source: Spiegel Online [3] Source: Die Welt
- Kiziltepe advocates for maintaining the policy-and-legislation of the current pension level, which is set at 48%, by proposing increases in pension contributions, extending the pension "holding line," and enhancing benefits like the "mother’s pension."
- In the realm of politics and general-news, Kiziltepe voices her dissent against the proposal to raise the retirement age to 70, arguing that it is infeasible for physically demanding jobs like care work or roofing.
