Budget debate 2024: Cuts in pensions - Interview with pension expert Matthias W. Birkwald

Budget debate 2024: Cuts in pensions - Interview with pension expert Matthias W. Birkwald

According to a report by diefreiheitsliebe.de, cuts in the additional federal subsidy for pension insurance by 1.2 billion euros per year will be decided for the years 2024 to 2027, which corresponds to a total of 6.8 billion euros. These cuts are seen as dangerous by pension experts as they could pave the way for further cuts to the welfare state. The federal subsidies are necessary to finance non-insurance benefits because the insurance system cannot support them on its own. The experts estimate the gap in financing non-insurance benefits at 37 billion euros. This decision could lead to the pension fund becoming empty more quickly and contributions having to increase. One way to improve the income side would be to ask the rich and super-rich to pay more. There are also many good reform proposals for the pension itself in order to strengthen the pension system. It is emphasized that social protests, non-violent, are necessary to draw attention to the problematic effects of these cuts and to bring about change.