If all goes by plan, the 'Basic Pension' concept in Germany will be introduced and passed today via the Bundestag.
The deal? Well....this is what ARD (public TV news, Channel One) is reporting:
This won't start until 1 January 2021.
Roughly 1.3-million Germans will benefit from the package.....of which were suffering from marginal pensions.
You had to work 33 years.....to get the deal.
Your pension will now rise (as a single person) to 1,250 Euro (roughly $1,500 US). Married? 1,950 Euro.
If you have secondary sources of income? For example? A rental house, or stock dividends, or a 50-percent interest in a flower shop? Basically, you are screwed because that income will be counted toward the max of 1,250 Euro.....so it could prevent you from getting the added money.
Where does the extra money in the pot come from? Unknown, and they aren't discussing much over the added cost to the yearly budget.
Did they need the money? No one much argues over that fact. If you were to look around....there are a fair number of retired Germans who get a 600 Euro a month pension package.....mostly because they worked at crappy jobs for the bulk of their career. Can you survive off 600 Euro (roughly $700 US dollars) a month? No. So for a lot of these people....they were already on some type of significant welfare payment/supplement.
It's hard to find anyone who disapproves of the pension change, but the chief issue discussed.....where exactly this will this money come from? More taxes?
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