"Stepping into the Future" - Economist Grimm's Ambition to Link Retirement and Inflation
Inflation-indexed pension system to be implemented, tying pension payouts to changes in the cost of living.
Hey there! Here's a spicy take on the current pension system debate, courtesy of economist Veronika Grimm. She's none too pleased with the new federal government, pointing out that they've been dancing around solutions instead of taking decisive action.
In a grumble to Deutschlandfunk, Grimm criticized the frequent discussions centered around superficial fixes and the coalition agreement's formation of a pension commission to brainstorm reforms. Grimm believes it's high time we got serious and started talking about challenging but essential measures for the long-term health of our pension system.
So, what's this scrappy economist's game plan? Well, she's calling for a gradual increase in the retirement age to match our longer life expectancy. At the moment, our current legal retirement age is 67. Grimm suggests bumping it up by a year every decade, which would help balance out the ratio of pensioners to employed individuals.
But that's not all! Grimm also wants to axe the pension at age 63 for those unable to retire due to health reasons. Plus, she thinks existing pensions should be adjusted based on the inflation rate, not wage growth, to keep retirees' purchasing power intact.
Now, you might wonder what Grimm makes of the recent kerfuffle started by Federal Minister of Labor and Social Affairs Barbara Bas. Bas proposed a cosmetic solution to pump up revenues by including civil servants in the statutory pension insurance. Grimm thinks this idea is a wash at best, noting that it comes with hefty costs and would only work if civil servants' claims were reduced.
Instead, Grimm suggests having a frank discussion about which professional groups should continue to enjoy the perks of being civil servants. She's all for sacking positions like police officers and justice workers, who she thinks should remain loyal to the state.
Check out the source ntv.de for more juicy details on this tempest in a teapot!
Keywords:- Retirement Policy- Inflation- Pension System
- In her ambition to reform the pension system, economist Veronica Grimm suggests linking retirement age to inflation, proposing a gradual increase each decade to maintain the balance between pensioners and the employed, and adjusting existing pensions based on inflation rate instead of wage growth.
- Delving into the realm of employment policies, Grimm also proposes axing early retirement for those unable to retire due to health reasons at age 63, and discusses which professional groups should continue to hold the perks of being civil servants.
- In addressing the general-news about the recent politics surrounding retirement policies, Grimm critiques Federal Minister of Labor and Social Affairs Barbara Bas' idea to include civil servants in the statutory pension insurance as a costly and ineffective solution, and instead calls for a serious discussion on reducing the privilege to specific professional groups.
