The pension package unilaterally favors pension beneficiaries. “The level of the pension is guaranteed, while the contribution rate can increase indefinitely in the future,” criticizes the BDA. “Given that the coalition has already ruled out raising the retirement age, all future burdens arising from aging will fall on taxpayers.”

In their statement, the businessmen warn of what they consider unaffordable costs. “Already in 2035, the additional spending on pensions would be around €30 billion higher than under the current law,” says the BDA. Over the next 20 years, additional spending would amount to half a trillion euros.

“It is not clear how the federal government wants to support the growing financial burden”

“On the one hand, taxpayers would be overwhelmed because their total burden of social contributions would increase to around 50 percent by the end of the next decade,” the businessmen explain. “It is also unclear how the federal government wants to support the growing financial burden of the federal subsidy.”

According to the latest report on pension insurance, federal subsidies would increase by more than half until 2035, up to 137 billion euros, according to current law. According to the draft, the federal government would have to do even more with the pension package
Raise 7.2 billion. “The origin of these additional elements remains completely open.”

Dulger: Promised services that cannot be financed

Employers' president Rainer Dulger said: “Once again benefits are being promised that will not be affordable in the long term. Does this federal government really know that we are on the verge of the largest accelerated aging in German history?” With increasingly higher social contributions, Germany will find it even more difficult to break out of “economic stagnation.”

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