Monday, November 11, 2019

More Chatter on the Supplemental Topic

There is an enormous amount of chatter this morning in Germany over the pension supplement business (agreed by Merkel's coalition over the weekend).

If you are single....meeting the 35-year pay-in, and your contributions meeting the 35 to 80 percent level of a normal pension.....leads to 1250 Euro for single individuals, and 1950 Euro for married couples. 

For some folks, it won't amount to more than 50 to 100 Euro more than they get currently.  For some other folks, it might double their current pension situation. 

Let's face facts in Germany....to live in a one-bedroom apartment, have a car, and live in retirement.....you need a minimum of 1200 Euro a month.  These individuals who were making 600 to 900 Euro on their pension....were marginally surviving, and to a great degree....relying upon welfare in some way.

The folks who don't have the 35-year pay-in?  Well, that will be brought up by journalists, and eventually....someone in the political spectrum will have to latch upon this as the next problem to solve. 

Where this 1-to-1.5 billion Euro sum will come from?  Oddly, no one is talking about that side of the issue.  I don't think you can go and talk over tax increases....so they will be carving this from some other point in the budget. 

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