Low-income earners will in future receive a pension of 844 euros

Image result for pensionThe Union and the SPD have agreed on the solidarity-based pension for life benefits over the weekend. Every month around 850 Euro pension should get low earners, provided that they fulfill certain conditions. For other pension plans, such as the pension with 63 and the mother’s pension, the two sides are still in disagreement.

Representatives of the CDU / CSU and SPD have agreed on a comprehensive pension package. This includes, among other things, the minimum pension described below, the maternity pension and the non-deductible pension at the age of 63.

There has been little improvement in pensions over the past four years. It is all the more important now that the Union and the SPD agree on a comprehensive pension reform in the coalition negotiations, which benefits all Germans. At least over the weekend, the work and social work group has come closer to low-income pension increases . The solidarity-based life benefit pension currently being discussed by the Union and the SPD envisages an increase in the pensions of low earners to around € 850 a month – if those affected provide certain proof. Both sides had previously planned similar measures with the Lebenschafts- and the Solidarrente to combat poverty in old age.

Increase of pensions: Union and SPD achieve compromise

Image result for pensionUrsula von der Leyen (CDU) has pushed for the Union with the requirement that people must have provided for the minimum pension privately or operationally . Only those who can prove that they have completed a company or private pension plan are entitled to the pension. In addition, recipients must prove 40 years of contributions to the statutory pension insurance. When calculating the low-income pension, income from other sources should also be taken into account. After the introduction of the solidary Lebensleistungsrente the access hurdles are initially set slightly lower, reports Spiegel Online. In the first ten years, 35 contribution years are sufficient. Moreover, the obligation to take precautionary measures is only to come into force five years after the new regulation has been introduced. The introduction is expected to take place by 2017.

Service: Be prepared and take care of your private pension now. So you not only uphold your claim to the new pension benefits . They are also building up a financial cushion for the retirement age. Request a non-binding pension offer now.

Guaranteed pension of around 850 euros per month for low-income earners

Many low-income earners depend on social assistance at retirement age, even though they have spent a lifetime in the state pension scheme. The Union and the SPD want to change this and increase the pension in the future to at least 30 salary points. Currently this corresponds to a monthly pension of 844 euros. The estimated cost of the improved old-age allowance initially amounts to 100 million euros per year. By 2030, however, they could grow to up to three billion euros annually. The pension increase is to be financed by means of taxation.

Solidary Lebensleistungsrente still on the edge

Even though the Union and the SPD are in agreement in the working group, the planned solidarity-based life benefits pension can still fail because of the cost issue. The agreement between the Union and the SPD is subject to the availability of the corresponding financial resources. With the pension at 63 and the mother’s pension, black and red on the small level has not been able to compromise. Financing is still under discussion for both measures. Now the demands are to be discussed on Tuesday by the 75 representatives from the parties in the so-called big round. The coalition agreement is due by the end of November at the latest. Only then will the Germans learn what the new government plans for the pension.