(Pensions; 10-03; p.4)

In total, the commission argues that applying their proposals would on the one hand lead to a further cleavage between pensions and wage and salary developments, thus that the transition from work to retirement will be related to stronger limitations.
Nevertheless the commission supposes a compared to today higher standard of living of future pensioners. The commission also recommends a private supplement to the state’s pensions fund.

 

Illusions

The in their effects rather moderate suggestions did cause some rumble among the German (lobbyist) public. Explainable becomes this possibly only by a lack of consciousness or illusions about the construction of state-run pension funds in post-war Germany.

So, the simple fact has to be mentioned that the distribution of income and based on that the distribution of fortune has not changed within the last forty years, i.e. all measures of trade unions and employers’ associations as well as all tax and social transfer legislation did not lead to a "re-distribution", often conjured up, but did maintain a status quo.

Moreover, even Germany’s constitutional court only speaks of a “property-similar” status of pension payments or to put it differently: pensions are nothing else but specially protected payments of a state-run insurance and not property that can be sued for.
– One can as well ask the after the Enron-scandals no longer hypothetical question, what a property right is worth that one can sue for in case the insurance company goes bust.

The only acceptable method to minimise risks thus seems to be the one pointed out by the Rürup-commission: pensioners should supplement their state pensions by private funds. (read on here)