Basic security: More pension for city dwellers?

Rents in metropolitan areas are significantly higher than in the countryside. The pension expert Gundula Roßbach calls for this to be taken into account when calculating the basic pension.

Basic security: More pension for city dwellers?

The president of German pension insurance company, Gundula Roßbach, calls for a higher basic pension in metropolitan areas. Rent differences between city and country would have to be included in calculation of planned basic pension for long-term low-income earners, Roßbach demanded. "In Bavarian Forest, for example, affected people need an average of several hundred euros less than in Munich," she told German press agency.

Especially in old age, people would have to be protected from social slippage by more support, said Roßbach. "What drives me is that it is difficult for nationwide pension systems to compensate for regional above-average increases in rent and differences in housing markets." In metropolitan areas, where housing is more expensive, old people may have more difficulty in getting basic pension.

Federal Minister of Social Affairs Hubertus Heil (SPD) had announced that next year will be launched. Those who have paid 35 years of contributions or who can have periods of education or care should be entitled to a basic pension. A federal government pension Commission is to draw up 2020 proposals by March on how pension system can be secured in period after 2025.

Roßbach praised current list of pension insurance. A large proportion of older people dispute ir income, but only three percent depend on basic security. There is a particular risk to poverty in old age for disability pensioners who can no longer work fully for health reasons. In addition, independent and long-term unemployed are risk groups. Such risk groups are currently examining pension insurance in LEA study ("Life Histories and Pensions"). Almost 10,000 people were interviewed for this, and now it is to be deduced which risks will be associated with pension insurance in coming decades.

Date Of Update: 31 May 2018, 12:01

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