Financial expert warns: Pension cuts by the traffic light government endanger trust and financing of the statutory pension.

Financial expert warns: Pension cuts by the traffic light government endanger trust and financing of the statutory pension.

According to a report by www.ruhr24.de,

The traffic light government's current austerity measures are causing discontent among the population. According to a cabinet decision on the 2024 federal budget, the pension fund will be burdened by 600 million euros. This leads to criticism from the German Pension Insurance (DRV) and the social association VDK. The DRV warns of a loss of confidence in the statutory pension and a possible additional financial burden for insured persons and employers. VDK President Verena Bentele sharply criticizes the government and sees trust in a long-term, stable and secure pension at risk.

Pension cuts and access to pension funds can have far-reaching effects. The planned cuts total more than 6.8 billion euros, endangering the long-term stability of pension funding. An additional financial burden on insured persons and employers could lead to a reduction in purchasing power and affect consumer spending. This could also have a negative impact on economic development in the country.

Criticism of the government could also undermine the population's trust in political decision-makers and the stability of the pension system as a whole. This could lead to a loss of approval and political support for the traffic light government. Uncertainty about the long-term stability of pensions could also lead to an increase in private provision, as citizens may have less trust in state pension insurance.

The or similar decisions could also lead to a change in the political landscape and influence public opinion about the parties. The traffic light government is therefore faced with the challenge of ensuring the financing of the 2024 budget without endangering trust in the pension insurance and the entire social security system.