CDU experts want to adapt retirement age to life expectancy
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Demographic developments pose serious problems for the German pension system. That is why CDU experts have now presented a pension paper that provides for profound changes for contributors – and apparently also for civil servants.
C.DU experts are working on a draft reform for a fundamental restructuring of pension insurance. In a draft of a pension paper of the CDU Federal Technical Committee available to the German Press Agency in Berlin, it is proposed to switch from the standard retirement age to a standard insurance period from 2030 onwards. The aim is to calculate the individual retirement age and automatically adjust the age limit to life expectancy. At first the news portal “The Pioneer“Reported on the paper.
According to this information, the committee intends to discuss the draft again on November 30th. The CDU emphasized that it was not yet the final paper of the technical committee. So far, no other body of the party has dealt with the proposals.
According to the CDU experts, based on the standard retirement age in 2030, a Standard insurance period of 45 years surrender. In the future, 45 years of regular insurance time would have to be provided in order to retire without a discount. Early or late drawing of the pension will be charged with deductions or surcharges. The starting point for the regular insurance period should be the time of the first employment contract or training contract subject to social insurance – at the latest the date on which there is no longer any legal entitlement to child benefit.
According to the pension insurance, the age limit for insured persons born before January 1, 1947 is 65 years of age. For insured persons born between 1947 and 1963, the limit is between 65 and 67 years. Insured persons born in 1964 and younger reach the standard retirement age when they turn 67.
The eleven-page CDU paper states, among other things, that the rising costs of old-age insurance cannot only be absorbed by contributors. Therefore it should be additional contribution to the statutory pension insurance give. By 2025, a decision should be made as to whether from 2030 the obligation to contribute should be extended to income beyond wages or whether more tax financing would make sense to stabilize the level of social security contributions.
Will the self-employed and civil servants have to pay in soon?
The “Bild” newspaper reports on another fundamental innovation: According to this, everyone should Officials under 30 years of age be integrated into the pension system. So far, their retirement benefits have been financed from taxpayers’ money. Also Self-employed, to whom it was previously optional to pay into the statutory pension fund, and Politician should then become contributors.
It is also proposed to convert the statutory pension insurance from a pure pay-as-you-go system into a long-term Mixed system of levy and capital investment to remodel. The draft states that the pension insurance should be commissioned to set up a corresponding pension fund for capital investments. To this end, 2.5 percent of gross wages – currently around 32 billion euros per year – should flow into the development of a pension fund instead of the pay-as-you-go system of the statutory pension insurance. In order to prevent any subsequent abuse, the pension fund should be placed under the supervision of the Bundesbank.