The proposal for a pension system overhaul, released by the Pension Commission over the weekend, has met with severe rejection from the BSW party. Fabio De Masi, the chairman of the BSW, told newspapers from the Funke Media Group that these plans would not repair the existing state but would only weaken it further. He stressed that millions of citizens face the threat of poverty in retirement, especially given the currently inadequate level of pension benefits compared to international standards.
In response to these proposed changes, the BSW announced its intention to subject the pension plans to a vote during the state elections in Eastern Germany this September. De Masi specifically criticized the suggested abolition of the retirement age of 63, noting that this measure would profoundly affect millions of people who have spent their lives working physically difficult jobs.
Furthermore, the BSW leadership argued that relying solely on private, capital-backed pensions will not solve the fundamental problem of demographic aging. Instead, De Masi advocated for adopting the Austrian model, which utilizes a centrally managed pension fund where contributions come from everyone. According to De Masi, good pensions are financially viable provided that both productivity and wages continue to grow.
