Pension as basic ensurance
I was thinking … after the last statements of the German chancellor Friedrich Merz, maybe we should not live that long … maybe we should live more in the moment :).
In Germany, as well as other European countries, there is a problem with the pension systems caused primarily of two factors. On one hand the ageing population (which will soon reach critical mass in Germany) and on the other hand the fact that there is a higher life expectancy. (circa 78 years). While I agree that it is a difficult problem to solve, I do believe that giving a warning regarding the fact that you can reach old age (retirement age is 67 in Germany) and simply not have enough money to sustain yourself, is simply a wrong strategy and also direction to take. After working for more than 45 years you are simply being told that if you won’t get an additional source of income like private pensions, investments etc. you will be in great difficulties. The statement “Die gesetzliche Rentenversicherungallein wird allenfalls noch die Basisabsicherung sein für das Alter“(Friedrich Merz) is the latest controversial one in a long measurements that “need to be taken“ in order to sustain the high quality of life. The irony is that the suggested steps have a direct impact, and not a positive one on each of us. To remember a few “quality of life” improvements suggested:
work an additional hour per week
reduce the number of free days in Germany
no longer support free healthcare for family members or support it only partially
While each measure is in itself only a small steps, a precedent is being created in each area. Let’s take the working of an additional hour. There are many studies that show the exact opposite. That the reduction of the numbers of the hours brought a boost in productivity and overall employee satisfaction. Why we are ignoring them and come with the exact opposite, beats my understanding.
Coming back to the subject at hand, it looks to me like a very similar approach as taken in the USA where you have to manage things for your own. The difference nevertheless is that in Germany you pay a LOT of taxes, working a regular job. So pay a lot of taxes for 40 years, reaching the point where you should be able to relax and enjoy your remaining years, but not being able to because you don’t have enough money to sustain yourself. While writing it, it almost seems better in USA… just kidding, with all that measures implemented and we still would be over the USA retirement system. (medical as well:) ). It seems to me that we save money on the wrong side … every proposal impacts directly the quality of life and makes the country less desirable to live in, especially for the native Germans who are born and raised here. I mention the native Germans more, because for the immigrants who come to this country, the system is still one of the most desirable in Europe.
There are videos like this one, which are entitled “I am leaving Germany“ and explain in detail their reasoning for leaving the country. While all mentioned motives are valid, there is a lack of understanding of how other countries are working and how privileged they were until now. I come from a country where the pension system is not good and the medical one is a horror in comparison, therefore stating that everything can and will be better than Germany, even with all the changes, is an overstatement. Germany, even with the “quality of life“ improvements suggested by the chancellor still remains one of the best countries to live in Europe.
We have, and I hope we will remain having one of the best pension and medical systems in the world, regardless of the changes in leadership. But only time will tell …
Until next time, TFG