Important change for pensioners: income test before basic pension falls?

Important change for pensioners: income test before basic pension falls?

According to a report by www.merkur.de, the SPD and FDP are thinking about abolishing the income test before paying the basic pension because the costs significantly exceed the benefits. Critics criticize the time-consuming and complicated process. This could lead to an important change for pensioners when it comes to basic pensions. The basic pension was introduced at the beginning of 2021 and averages 86 euros. Around 1.1 million pensioners, mainly women, benefit from this.

The possible abolition of the income test would have many implications. On the one hand, this would reduce the administrative burden for pension insurance and reduce the horrendous administrative costs, which could free up financial resources. These resources could be better used to help retirees more directly and effectively. On the other hand, the abolition of the income test could mean that the basic pension no longer reaches those who need it most. Therefore, policymakers would need to ensure that those entitled to pensions continue to be adequately supported if the change is implemented.

The possible change could also have an impact on the financial market. If the basic pension can be paid out more effectively and precisely, this could improve the financial situation of pensioners. As a result, pensioners could have more money at their disposal, which in turn could affect their consumption and thus the economy. On the other hand, any savings in pension insurance would need to be carefully assessed and planned to ensure that the basic pension is adequately funded and fulfills its purpose.