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Kaiser Warns: Cut in Pension Levels Will Hit the East Hard

Kaiser Warns: Cut in Pension Levels Will Hit the East Hard
According to Kaiser, there should be no reduction in the current pension level for East Germans starting in 2031. (File photo) / Photo: Patrick Pleul/dpa
From: DieSachsen News
For many East Germans, the statutory pension is their only safety net in old age—which is why a reduction in pension levels starting in 2031 could be particularly dangerous for them.

Elisabeth Kaiser (SPD), the Federal Government Commissioner for Eastern Germany, has warned that the planned pension reform poses a particular risk of poverty among the elderly in eastern Germany. “There must be no reduction in the current pension level for people in eastern Germany starting in 2031,” Kaiser told the *Leipziger Volkszeitung* and the *Sächsische Zeitung* (Tuesday edition). Otherwise, many people would face the threat of poverty in old age. “For most East Germans, the statutory pension is their sole means of support in old age.”

Saxony’s Minister-President Michael Kretschmer (CDU) is also urging that the specific needs of East Germans be taken into account. “Anyone discussing the future of our pensions must take the life achievements of people in eastern Germany seriously,” Kretschmer told the two newspapers. Many, he said, had coped with enormous changes after reunification, lost their businesses, learned new trades, and helped rebuild the country.

The statutory retirement age will rise to 67 by 2031. According to the commission’s recommendations, it should then increase by half a year every decade thereafter. In addition to linking the retirement age to general life expectancy, the plan also calls for, among other things, the abolition of the “retirement at 63” option.

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A pension level of 48 percent is set to remain in place until 2031. After that, the “sustainability factor”—which curbs the annual increase in pensions—is to take effect again. In the medium term, the capital pension is intended to offset this. For people who are already quite close to retirement age, a “transition factor” is planned to keep the pension level close to 48 percent.

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