The social organization urges bureaucrats to help fund retirement benefits.
The Paritéaire Gesamtverband, in their recent analysis, found that nearly 20% of individuals above 65 in Germany are categorized as impoverished. To combat the rising issue of senior poverty, the organization suggests that civil servants and self-employed individuals should contribute to the pension scheme moving forward.
Johannes Rock, set to become the future head of the Paritéaire Gesamtverband, shared his thoughts with the Stuttgarter Zeitung and Stuttgarter Nachrichten papers, stating, "Old age poverty is a rapidly worsening problem." To address this issue, Rock proposes extending the pension insurance scheme into a welfare insurance scheme that includes contributions from civil servants and self-employed individuals, in addition to raising the pension level and implementing minimum pension plans.
Rock's recommendations come from the Paritéaire Gesamtverband's analysis, which indicates that only about one in five elderly people in Germany experience financial hardship. This figure was significantly higher twenty years ago, when half of the elderly population faced poverty.
The German government is set to ratify the scheduled pension package II in the coming week. This initiative, spearheaded by Labour Minister Hubertus Heil and Finance Minister Christian Lindner, is aimed at securing the pension level and delaying the anticipated increase in pension contributions by investing in the capital market.
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The Paritätischer Wohlfahrtsverband, in reaction to the pension package II, issued statements expressing concern that it may not effectively combat senior poverty. Despite the decrease in the poverty rate among elderly individuals, with only one in five experiencing financial hardship, the organization believes that more needs to be done. Rock's proposals, which include extending the pension insurance scheme and raising the pension level, have gained support from various sectors due to the persisting issue of pension and poverty amongst the elderly.
Source: www.ntv.de
