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Inflation-adjusted pension growth will be implemented, ensuring pension payments keep pace with the rising cost of living.

Informative Steps Invoked to Alleviate Tension

Annuities need to follow the inflation rate rather than wage growth, according to Grimm's...
Annuities need to follow the inflation rate rather than wage growth, according to Grimm's perspective.

Inflation-adjusted pension growth will be implemented, ensuring pension payments keep pace with the rising cost of living.

Title: Tough Actions Needed: Veronika Grimm Advocates for Pension Measures Tied to Inflation

Chit-chat Hey there! Let's chat about the pension system, shall we? Sounds like a fun topic, right?

Veronika Grimm, a renowned economist, is voicing her concerns about the federal government's handling of the pension issue. According to Grimm, the government's solutions are merely temporary and lack long-term vision.

Grimm spoke out on Deutschlandfunk, slamming the government for avoiding concrete measures regarding the pension system in the coalition agreement. Instead, they're caught up in constant discussions about quick fixes.

On the Table:

  • Raising Retirement Age: Grimm believes the retirement age should gradually adjust to rising life expectancies, not all at once but by about a year every ten years. This would help keep the number of pensioners and working individuals in balance.
  • No Early Retirement Perks Unless Necessary: Grimm proposes abolishing the pension option at 63, provided that the individual can still work until the standard retirement age due to health reasons.
  • Pension Indexed to Inflation: Grimm suggests linking pensions to inflation, rather than wages, to prevent pensions from outpacing the overall economic capacity and preserve their purchasing power.

Grimm admitted that these steps might feel uncomfortable, but she insists they're necessary to maintain the pension system's long-term viability and sustainability.

Regarding Federal Minister of Labor and Social Affairs Barbara Bas's proposal for civil servants to be included in the statutory pension insurance, Grimm dismisses it as a short-term solution. Collateral expenses would come with the payments, making the plan ineffective unless civil servants' claims were reduced.

Instead, Grimm suggests a more thoughtful discussion on which professional groups should maintain civil servant status. She proposes excluding professions with high loyalty to the state, such as the police, justice employees, and so forth, from receiving civil servant status.

Sources: ntv.de, chl/dpa

  • Pension
  • Pension Policy
  • Inflation

[1]: enrichment data - Grimm's pension reforms aim to make the pension system more sustainable and fair in the context of demographic and economic changes. The proposed measures include raising the retirement age, abolishing early retirement at 63 if health permits, and linking pensions to inflation, not wages.

[2]: enrichment data - Grimm's measures are intended to address long-term pension system sustainability, contrasting with what she perceives as insufficient or superficial reforms currently discussed by the German government coalition.

[3]: enrichment data - Grimm also proposes a discussion on which professional groups should retain civil servant status, with suggestions to exclude jobs that require a high level of loyalty to the state, such as police officers and justice employees.

  1. In her proposed reforms, economist Veronica Grimm emphasizes the importance of tying pension policy to inflation, as part of her plan to make the retirement system more sustainable and fair during demographic and economic changes.
  2. Grimm's pension reforms seek to address the long-term sustainability issues she perceive in current discussions about the pension system in German politics, contrasting with what she deems as insufficient or superficial government reforms.

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