Pension expert Martin Werding criticizes the federal government's pension policy

Pension expert Martin Werding criticizes the federal government's pension policy

Economics Martin Werding has heavily criticized the pension policy of the federal government, particularly Chancellor Olaf Scholz and Labor Minister Hubertus Heil. Despite political headwinds, he remains steadfast in his forecasts for pension developments and defends his assessments. Werding warns about the risks associated with pension plans and emphasizes that he has always been careful not to create exaggerated scenarios.

Werding was particularly disappointed with the traffic light coalition's pension package. He sees this as a significant burden for young people and predicts an additional burden of 520.5 billion euros for contributors by 2045. The renowned economist sharply criticizes the government for not adequately taking important challenges such as demographic change into account and for not introducing decisive reforms.

Although Labor Minister Heil does not share the criticism of pension policy and speaks optimistically about pension developments, Werding remains skeptical. He doubts the plans of the traffic light coalition with regard to pension policy and immigration. Chancellor Scholz in particular is criticized by Werding because of his statements about the unemployment rate. Werding emphasizes that the aging of the population cannot be compensated for by increased employment alone.

Economists also complain about the weakening economy in Germany and criticize politics, especially Scholz. Despite the low growth of gross domestic product in the first quarter of 2024 of 0.2 percent compared to the previous quarter, the German economy is not yet on the verge of an expected recovery. The Federal Ministry of Finance confirms that there are still no clear signs of an economic recovery.