The newly formed government under Friedrich Merz is drawing attention with its proposed reforms to the widow's pension. Central to this plan is reducing the offset of one's own income to encourage more employment among widows. This initiative has garnered support from social associations like VdK Deutschland, who see it as addressing long-standing demands. However, not all experts are convinced. Johannes Geyer from the German Institute for Economic Research expresses skepticism due to limited empirical evidence supporting such reforms.
Veronika Grimm, a respected economist, advocates for a more comprehensive approach. She argues that current widow's pension policies disincentivize personal financial planning and work. Grimm suggests cutting these pensions, as surviving spouses no longer have partners to support. She also criticizes adjustments to the mother's pension, advocating instead for raising the retirement age to ensure long-term financial sustainability.
These proposed changes coincide with critiques from organizations like Human Rights Watch, which warns that these reforms could lead to 'real cuts' in social benefits. They call for a reevaluation of social security adequacy and calculation methods.
Despite the controversies, consumer groups like the Verbraucherzentrale Bundesverband (vzbv) acknowledge some positive aspects of the coalition agreement. They see potential improvements in areas such as energy prices and private retirement planning. However, they also highlight areas needing further attention, including health, nutrition, and data protection.
As Merz aims to implement these reforms swiftly, he faces opposition and sinking approval ratings. The government must navigate these challenges while securing agreement from SPD and CDU to proceed with the coalition plan.
