Financial expert: These pension changes are essential for the future of the German economy

Financial expert: These pension changes are essential for the future of the German economy

According to a report by www.fr.de, the economists have called on the federal government to fundamentally reform the pension system in Germany in order to solve long-term financing problems. They propose a combination of different measures, including linking the retirement age to life expectancy, adjusting pensions for inflation and staggering pension entitlement according to income level. In addition, they criticize the government coalition's planned fixing of the pension security level of 48 percent. Economists also advocate the introduction of supplementary capital coverage via a publicly managed fund.

These proposals could have a significant impact on the German market and the financial sector. Linking the retirement age to increasing life expectancy could reduce the long-term financial burden on the pension fund, while adjusting the pension for inflation could secure the purchasing power of existing pensions but affect future generations of pensioners. Staggering pension entitlement according to income level would have the potential to reduce the risk of old-age poverty among low earners.

The introduction of supplementary capital cover through a publicly managed fund would create an alternative investment option for pension insurance contributors and could have an impact on the stock market and capital markets as a whole.

The economists' cautious forecast for the German economy could also raise concerns about economic growth and possible effects on the financial markets. An expected slowdown in gross domestic product this year and muted growth prospects could impact investments and markets.

The demands of economists and their assessments of economic development in Germany should be followed closely by political decision-makers and market actors, as they could potentially have far-reaching consequences.