Savings measures for pensions: Federal government cuts subsidies - financial experts warn of consequences

Savings measures for pensions: Federal government cuts subsidies - financial experts warn of consequences

According to a report by amp.infranken.de,
The austerity measures for pensions are controversially discussed, and the reduction in subsidies for statutory pension insurance is seen as particularly problematic. The German Pension Insurance (DRV) criticizes the measures and warns of the serious consequences for the pension system.

The reduction in subsidies for statutory pension insurance amounting to 600 million euros has far-reaching consequences. The DRV warns that the pension insurance reserves will be used up if the cut is implemented. This could lead to an increase in the pension insurance contribution rate, which would burden both the insured and the employers. The pension insurance emphasizes that this would be a direct effect of the government's austerity measures and that the pension insurance could reach a statutory lower limit which would make an increase in the contribution rate unavoidable.

The DRV also warns that the planned austerity measures call into question the reliability of promises and undermine trust in the statutory pension. The pension insurance company points out that austerity measures in pensions are becoming an increasingly important issue and particularly highlights the potential impact on the mother's pension and the double taxation of pensions.

Overall, the DRV's criticism of the pension savings measures is clear and points to fatal consequences for contributors and the pension insurance. The planned reduction in subsidies for statutory pension insurance could lead to considerable financial burdens for the insured and the pension insurance. These developments have the potential to have a lasting impact on the market and the financial industry.