Kretschmann calls for new pension models in view of increasing life expectancy and healthy, productive pensioners

Kretschmann calls for new pension models in view of increasing life expectancy and healthy, productive pensioners

According to a report by www.n-tv.de, Winfried Kretschmann, Prime Minister of Baden-Württemberg, calls for “other pension models” in view of increasing life expectancy and the changing ability of older people to work. He complains that the annual subsidies to the pension insurance account for almost a quarter of the federal budget and that many citizens have too high expectations.

In fact, increasing life expectancy and the changing ability of older people to work is a factor influencing pension policy. According to a study by the Federal Statistical Office, life expectancy will continue to increase in Germany in the next few years. This means that people receive pensions for longer and pay fewer contributions, which can put a strain on pension funds.

The demand for “other pension models” could mean a postponement of the retirement age or new incentives for longer working hours. This could have a direct impact on the labor market by making older workers stay in the workforce longer and making it easier for younger workers to get started. Such reforms could also make private pension provision and company pension schemes more important.

Kretschmann's criticism of the “pension at 63” and the exemption from deductions after 45 years of insurance could also lead to a review and possible reform of this pension model. This could affect the financial stability of pension funds and may have to be offset by redistribution measures or increasing contributions.

Overall, a redesign of pension models would be a complex process that could have far-reaching effects on the labor market, the financial sector and the entire economy. It offers an opportunity to adapt pension systems to changing demographic and economic circumstances, but could also pose challenges and controversies.