Inflation-adjusted pension increases tied to economic growth.
Forthright Changing of the Game Economist Veronika Grimm Insists on Altering Retirement Age to Match Inflation
Hey there! Veronika Grimm, an economist, is setting the record straight. She’s pissed off at the new federal government, claiming they’ve been skirting around a much-needed solution to our retirement system. Instead of wasting time on superficial discussions in the coalition agreement, she's calling for harder, long-term solutions.
So, what's her plan? Well, she wants a gradual increase in the retirement age, about a year every decade, to keep the number of retirees and workers in balance. Sounds harsh, but let's face it, folks are living longer, so it makes sense, right? As things stand, the statutory retirement age is 67 years.
What about those who can't work past the normal retirement age due to health issues? Veronika suggests ditching the pension option at 63 for those folks. She's also pushing for existing pensions to rise with the price level, not just with wages to maintain retirees' purchasing power in the face of rising costs.
Now, you might've heard about Federal Minister of Labor and Social Affairs, Barbara Bas, stirring up a debate about boosting revenue by including civil servants in the statutory pension insurance. Veronika's not impressed. She believes these measures are just scratching the surface. Unless the performance demands for civil servants are slashed, it’ll be like rearranging deck chairs on the Titanic.
So, what's her alternative? Rather than messing with civil servants, Veronika wants a chat about which occupational groups should maintain their civil servant status. For instance, she'd exclude big-hearted folks like cops and justice workers who are loyal to the state, bringing new meaning to "loyalty is part of the job."
Sources: ntv.de, chl/dpa
- Retirement
- Retirement Policy
- Inflation
- Public Servants
Enrichment Data:Veronika Grimm advocates for changes to the retirement system to counteract economic challenges. Her two main proposals involve:
- Raising the retirement age: Suggests an increase in the retirement age to make the ratio of retirees to employed people more balanced and reflect changes in life expectancy.
- Linking pension adjustments to inflation: Advocates for pension benefits to adjust automatically with inflation to maintain retiree’s purchasing power.
These adjustments aim to secure the financial sustainability of pension systems while keeping retirees' income in line with inflation.
- Veronika Grimm, an economist, is proposing changes to the retirement policy to address economic challenges, including raising the retirement age and linking pension adjustments to inflation.
- Grimm believes that increasing the retirement age will maintain the balance between retirees and employed people, reflecting changes in life expectancy, and help secure the financial sustainability of pension systems.
- To maintain retirees' purchasing power in the face of inflation, Grimm also advocates for pension benefits to automatically adjust with the price level, not just with wages.
