Low pensions: “It’s not about holiday money”

More than 1.3 million people receiving old age pensions are working. This arises from a request from the Left Party to the federal government. Compared to 2012, the proportion of people between 65 and 69 who are working has increased from eleven to 19 percent. What are the reasons for this development?

One aspect is demographic change. But most pensioners work in minor jobs. This means that many people simply do not have enough money and urgently need to earn some extra money. Furthermore, it does not necessarily mean that the world of work is designed in such a way that people want to work longer hours willingly and voluntarily. This may be true for some. Most of those who continue to work just need the money.

The left is against “hard work to death!” Pascal Kober, social policy spokesperson for the FDP parliamentary group, argues that many people continue to work for fun.

It is always possible for anyone who wants to go to work to do so. But I see the danger that everything will become more personal. Pensioners who don’t have much money are also told: Then just go to work. That is not the purpose of social security in old age. Many people do not reach the normal retirement age because of the tough mental and physical demands of their jobs. There should be no expectation that work is normal beyond retirement.

Martin Werding of the Expert Council, which advises the federal government on this, claims: Continuing to work is often about “gaining additional financial flexibility.”

This can be interesting for people who work at a desk. For people who work on construction sites, continuing to work there at the age of 75 is not a good option. It is a very academic debate. For most pensioners it is about making sure they will live. They earn extra money so that they have enough in case of an emergency or if the washing machine breaks down and they have to buy a new one. It’s not about money for a vacation.

The “wise economic man” Werding wants higher pension reductions for people who retire at the age of 63. Who would this affect in particular?

This particularly affects people with lower pensions. On average, they have a shorter life expectancy than the rich anyway. If they have to accept higher cuts, cutting pensions again is an injustice. Transitions from work to retirement need to be better managed, especially when people are unemployed or caring for relatives. In the latter case, there should be a repayment benefit for care so that you are not financially dependent on the contributory pension.

The average pension after deductions amounts to 1,384 euros, just above the poverty level defined by the EU for Germany of 1,250 euros for people living alone. Should there be financial incentives to encourage people to continue working past retirement age?

No. A better minimum wage is needed so that people have a chance to save something for their old age. We need good wages and a pension rate of at least 53 percent. Because rents in expensive cities such as Berlin, Munich or Frankfurt are so high that they cannot be paid with an average pension.

What does the VdK society want?

The federal government must ensure that the world of work becomes easier, more attractive and more suitable for older people. This means that more people can stay in their jobs until they reach the normal retirement age. There is a need to support not only people who work in academic or desk jobs, but especially people who do not have much money who have serious concerns. To do this, the federal government must look at the wage structure and increase the minimum wage.