Last week, the experts from the German Council of Economic Experts, also known as the"Wise Men", presented their new report on the economic situation in Germany to the Federal Chancellor . A central chapter of the report is dedicated to the reorganisation of the statutory pension insurance system. This is necessary in order to make the system fit for demographic change. The Expert Council's report is largely based on current study results from researchers at the University of Regensburg when it comes to the specific design of such a reorganisation of the pension calculation.
One important topic: a reduction in the general pension level is to be expected in the future. However, adequate pension benefits should continue to be guaranteed in order to reduce the risk of poverty in old age. In order to achieve this, the Council of Experts recommends changing the pension calculation to a progressive pension: "People with a low income and consequently low pension entitlements will receive disproportionately high pension benefits. To finance the measure, the pension benefits for higher-income groups will be reduced." (German Council of Economic Experts report 2023/24, p. 329).
In designing such a change to the pension calculation, the report is largely based on the current study results of UR researchers Prof Dr Fabian Kindermann and Veronika Püschel, MSc. Specifically, they propose a reorganisation of the pension calculation that combats poverty in old age and at the same time promotes gainful employment, especially among employees with low incomes. The proposed reform measures therefore not only effectively combat poverty in old age. They also strengthen the idea of people making their own provisions through their own employment.