Research Unveils Potential Shortfall in Funding for Social Security Taxes
A new study reveals an impending increase in social contributions, with significant hikes expected in sectors like statutory health insurance and pension insurance. As per the German Press Agency's study, collective contributions from various insurance sectors could surge by 7.5 percentage points to reach 48.6% by 2035. The Berlin IGES Institute, on DAK-Gesundheit's behalf, projected contribution growth for pension, health, care, and unemployment insurance based on current assumptions.
Researchers used average values for factors influencing contributions, such as birth rate, life expectancy, migration, and wage development. They provided scenarios for favorable and unfavorable contribution fluctuations. DAK's Board Chairman, Andreas Storm, urged politics to act swiftly and prevent an explosion of contributions.
Storm warned that contrary to past political assurances, it was unlikely that social contributions could be kept below 40%. In the statutory health insurance alone, contributions are expected to rise from the current 16.3% to 19.3% over the next ten years.
Suggestions from the Kassenchef
The Kassenchef proposed a stability agreement for statutory health insurance, covering health funds' costs for insuring welfare recipients from the federal government. The federal subsidy for statutory health insurance should see an annual increase, according to the Kassenchef. Additionally, he suggested linking statutory health insurance funds' expenses to the average development of contribution-paying income, creating a "dynamic expenditure cap."
Contribution rates in care insurance could rise by 0.7 percentage points by 2030. In unemployment insurance, the contribution rate will lower slightly from 2.6% to 2.5% by 2027 before increasing to 3.0% by 2035. In statutory pension insurance, contributions are projected to increase from the current 18.6% to 22.3% by 2035, factoring in the planned SPD-pension package.
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In response to the projected rise in social contributions, there's a pressing need for a reevaluation of social policy to mitigate the impact on citizens. Implementing such a review could lead to the development of more efficient social systems that can balance the increasing costs.
The proposed stability agreement for statutory health insurance is a step towards addressing the concern of rising contribution rates in various social systems, providing financial support from the federal government for insuring welfare recipients.
