Expert explains: The pension will continue to rise

Axel Börsch-Supan is for sure: "The pension will continue to rise in the future," explains the pension expert of the "Südkurier", with its headquarters in K

Expert explains: The pension will continue to rise

Axel Börsch-Supan is for sure: "The pension will continue to rise in the future," explains the pension expert of the "Südkurier", with its headquarters in Konstanz.

The increases would be lower than the wage increases, but also pensioners would benefit from the economic development. "The Generation of our children will get 30% more pension than my Generation ," says the 1954-born economist. He cites as the reason for his optimism that the productivity of the German economy will continue to rise – which pensioners benefit.

For better understanding: In the year 2018, the average old-age pension in Germany amounted, according to calculations by the Federal government to 906 euros. In 2010 it had amounted to only 740 Euro in order to increased in the mentioned period, more than the wages.

digitizing is similar to lack of young workers from

The pension expert believes that the aging of German society will have less of an impact than many feared. Börsch-Supan calls for two complementary developments: The demographic change leads to a "lack of young workers". However, this shortcoming will be compensated, thanks to the digitization Computer and machines will be able to make "at least some of the work for us," said the renowned scientist. Exciting, but just no time?

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Munich Center for the Economics of Aging (MEA) Professor Axel Börsch-Supan joined the Max-Planck-Institute for social law and social policy in Munich

Börsch-Supan clothed for years, the Post of Director of the Munich Center for the Economics of Aging (MEA). The setup belongs to the Max-Planck-Institute for social law and social policy. In addition, Börsch-Supan working in the expert group on "demography" of the Federal government. In addition, the EU Commission, the world Bank, the OECD, as well as several foreign governments, the Expertise of the Economists.

Börsch-Supan expected, however, that the digitisation will make certain jobs redundant. However, the Economist refuses to give exact forecasts. Because of the economic change will also bring new Jobs to emerge. No one could but say "seriously before," what jobs will ultimately be affected.

Proposed basic pension is a "Monster"

In the Interview, Börsch-Supan attacked the basic pension, which will come under pressure from the SPD group in the Bundestag. The pension professional explained: while It is right to reward people "who worked for a long time, and in the pension insurance scheme have paid". The basic pension is not suitable, to reduce the potential for poverty in old age. "The basic security is there," says Börsch-Supan.

in addition, Börsch-Supan craft complained of errors in the design of the basic pension. She was a "Monster". The expert is clear: "The law is full of Details that are deceptive and no one understood." PDF Everything you need to know about your pension

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Börsch-Supan criticized planned financing

The projected cost for the basic pension should amount to around two billion Euro per year. Federal Finance Minister Olaf Scholz wants to raise the money by using a controversial new tax on financial transactions. Börsch-Supan considers the plan "bold" and declared: "I doubt that this Plan works."

Börsch-Supan, instead, pleads for education campaign

The Economist advises, workers better trained, "so that the company will pay you higher wages". An educational offensive was necessary that the state must Fund. The basic pension but with an annual billion-extra cost, lacking the money for investments in education.

Börsch-Supan denies in the interview, the need to increase the length of the working life in the near future to 70 years. By 2030, the working-life will be raised to 67 years. Should occur, then a further correction is required, to stay the time to respond. The Economist clarifies: "The pension system must adapt itself to our living conditions". So much money you get at the age click Here for pensions calculator

"Occupational pension scheme removing"

Börsch-Supan breaks in addition, a lance for more company pensions (bAV). Low-income earners in need of a supplementary occupational pension. The pension professional, however, warns that in order for a bAV lead to significant income that would have workers pay in for decades. Here, the policy required to make younger employees offers.

Börsch-Supan defended the so-called generation contract. This is the method that current workers to Fund with their contributions the pensions of current retirees. They do, in the assumption that later the then active employees to Fund their pensions. The contract between the generations have proven that it works – for example, after the Second world war, or the reunification.

Thus, workers should self -

provisions The best remedy against old-age poverty Börsch-Supan sees in it a "well-insurance paid social agents Job". Secure adequate state pension. In addition, Employees should invest in a wide stray of equity funds and long-term hold. Private pensions: Now

expert, check-in with (display) declared: declared the first block for each of the retirement FOCUS-Online expert: This is the first building block for any pension provision, "It blew us away": an Angler to cut the pike - his last meal is still alive PCP "It blew us away": an Angler to cut the pike - his last meal is still alive

Updated Date: 08 January 2020, 01:01

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