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German Economist Pushes for Overhaul of Pension System to Address Looming Crisis

Veronika Grimm advocates raising the retirement age, abolishing early retirement and mother’s pensions, and reforming widow’s benefits to ensure long-term sustainability.

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Der Staat gibt Unsummen für Renten aus. Es gibt daher Kritik an der Angleichung der Mütterrente und Forderungen, später in Rente zu gehen. Eine Sachverständige hat noch einen neuen Ansatzpunkt.

Overview

  • Veronika Grimm, a member of the German Council of Economic Experts, warns that Germany's pension system faces severe financial strain without urgent reform.
  • She proposes tying the retirement age to life expectancy, allocating two-thirds of additional life years to work and one-third to retirement.
  • Grimm calls for the abolition of the Mütterrente (mother’s pension) and the Rente mit 63 (early retirement at 63), citing their unsustainable costs in an aging society.
  • She suggests reforming widow’s pensions to reduce dependency and encourage individual savings and workforce participation.
  • Economists emphasize that without structural changes, contribution rates could exceed 20% by 2040, jeopardizing intergenerational fairness and fiscal stability.