So if you were a German and had worked your entire life....ready to retire....your sum of a pension would end up around 450 to 500 Euro. Naturally, it's not enough to survive, and you'd have to go down to the local social office to beg off some kind of welfare-supplement deal. This has been on the minds of politicians for several years.
How many Germans fall into this category? Roughly three million.
The real fault of this issue? You can start and ask....how did a guy work minimum wage jobs for his entire life? The German system allows it. Raising the minimum wage? If you raise this....you end up with some form of inflation.
This week, there's chatter going on that the German government will invent some method of raising up your pension artificially.....say to 850 to 950 Euro a month. Where will the money come from? Regular taxation.
Creating another problem financially? Some people will go and suggest that this isn't the best idea to resolve the issue. The guy who worked his entire life at one or two steps above minimum wage, and has right now the 850-to-950 Euro a month pension? He has to be shaking his head. Via the sales tax, here this guy is....helping to sponsor the minimum wage folks, and nothing for himself.
The end? Maybe. But I suspect the bucket of money being used for this....will eventually get to a point of being too empty, and more taxation will have to occur.
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