"Stepping Up the Pace" Economist Grimm Proposes Aligning Pensions with Inflation
Inflation-connected pension adjustments to spur economic advancement
Listeners of Deutschlandfunk might've heard Economist Veronika Grimm blasting the current federal government for shying away from addressing the pension system's long-term issues. Grimm believes cosmetic solutions are insufficient; instead, she advocates tough measures to secure our future.
In essence, she proposes raising the retirement age with the increasing life expectancy. It's not about a drastic increase but an average year bump every decade. This adjustment would balance the ratio of pensioners to working individuals. Currently, retirement age stands at 67 years.
Grimm also supports the idea of abolishing pensions for those who can work until the standard retirement age due to health reasons, at age 63. Additionally, she suggests tying existing pension increases to the price level, rather than wages. "These suggestions might make you squirm, but in the long run, they ensure our financial stability," Grimm states.
When it comes to Federal Minister of Labor and Social Affairs Barbara Bas's proposition to enhance income by incorporating civil servants in the statutory pension insurance, Grimm labels it a superficial solution. She argues that any increase in spending comes with its costs. Her proposition makes sense if civil servant's performance demands are reduced.
Instead, Grimm proposes talking about which occupations should retain the status of civil servant. She supports removing positions linked to allegiance to the state, such as law enforcement and judicial employees.
[1] In the available search results, no specific details could be found regarding the precise proposals by Veronika Grimm for tying pensions to inflation. For more detailed information, consult additional sources or access any publications or interviews where Grimm discusses her proposals on this matter.
- The employment policy could potentially undergo changes based on Veronika Grimm's proposals, as she advocates tying existing pension increases to the price level, rather than wages.
- Grimm's community policy might include reevaluating certain positions in regards to their alliance with the state, such as law enforcement and judicial employees, as she suggests removing these positions from the category of civil servants.
