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FDP proposal: Tougher social policy with pension cuts
The FDP plans: cuts in pensions and citizens' benefits - what are the consequences? Find out how the Liberals' proposals could affect pensioners and citizens' benefit recipients.
FDP proposal: Tougher social policy with pension cuts
With a new resolution paper, the FDP has called for a significantly stricter social policy that provides for cuts in pensions and citizens' benefits. Pensioners would be particularly affected by these plans. In the resolution paper, the FDP calls for tougher sanctions on citizens' benefits against so-called total refusers and the abolition of pensions at the age of 63.
The party proposes that citizens' benefit recipients who refuse reasonable work without good reason must expect an immediate 30 percent reduction in benefits. Furthermore, the FDP calls for the scope for stricter sanctions to be fully exploited, including a possible complete cancellation of benefits. In addition, the level of benefits should not increase any further for the time being and no new social benefits should be decided for at least three years.
The FDP's rejection of pensions at the age of 63 is based on the shortage of skilled workers. Instead, the party advocates making hiring people of retirement age more attractive by eliminating the employer contribution to unemployment insurance once the standard working limit has been reached. The FDP also emphasizes the need for better tax treatment for overtime.
The effects of the FDP proposals can currently only be speculated on, as hard implementation seems unlikely. However, statistical data shows that only a small percentage of citizens' benefit recipients would be affected by the proposed cuts. The abolition of the pension at 63, however, would have more significant consequences, as around 30 percent of new pensioners have received this form of early pension in recent years.
It remains to be seen whether the FDP's plans will actually lead to an increase in the employment rate or whether more people will instead slip into old-age poverty due to lower pensions. A potential mix of both scenarios is likely. Overall, the FDP plans could have a significant impact on social policy in Germany.