The economic adviser and government consultant Martin Werding has sharply criticized the pension plans of the black-red coalition. He considers the proposed measures to be costly, unfair to future generations, and socio-politically problematic.
Issues with Pension Stabilization
Werding particularly criticizes the planned stabilization of the pension level and the expansion of the mother’s pension. These measures would incur additional costs at a time of acute demographic aging. According to Werding, the plans are heading in the wrong direction.
End of Cost Participation by Older Generations
Another problem Werding identifies is that the plans would end the previous model of cost participation by older generations in the consequences of demographic change. So far, older individuals contributed to financing through an increase in the retirement age and a declining pension level – both are now set to be eliminated, which would primarily burden younger generations in the future.
Criticism of the Expansion of the Mother’s Pension
The planned expansion of the mother’s pension is also viewed critically by Werding, as it could create new inequalities and does not help to mitigate the development of expenses in a socially acceptable manner.
Additionally, the coalition plans include measures such as a tax-free additional earnings limit and pension fund contributions, which Werding assesses as political compromises without sustainable reform impact. The criticism of these plans is particularly relevant for savers and investors, as they could affect future contribution or tax burdens.
In summary, Martin Werding sees no sustainable solution in the coalition plans for securing pensions; instead, he warns of high cost burdens for younger people and an unfair distribution of burdens between generations.