Germany to increase mothers’ pensions earlier than was planned

The Christian Social Union (CSU), the Bavarian sister of the Conservative Christian Democratic Union (CDU) of Bavaria, who has persuaded a big brother to implement one of her own pets: the increase in pension subsidy for older parents- plan, Dw said.

The increase in pension mothers who had children before 1992 comes with a price of about 5 billion euros a year and is now being implemented on January 1, 2027, despite large cuts elsewhere to Germany’s federal budget.

According to German media reports, the government still has a gap of about 172 billion euros ($ 198 billion) for its financial planning for the years 2027 to 2029.

The scheduled increase in 2027 is the third of the three steps and adds an additional half percentage of the pension – which operates at about 20 euros per child per month for children born before 1992.

CSU Secretary -General Martin Huber has called on the “completion” of the mothers’ pension plan and said that 10 million women would benefit. “For many female retirees, this rise makes a big difference,” he told RND News Network.

Although the change will eliminate an inequality between pensions taken from older and younger generations, experts say the measure does nothing to close the gap between gender between men and women or even total inequality in the country. Despite the name, all parents are eligible for motivation “, as well as parents and grandparents, if the child lived with them for a significant period of time.

Peter Haan, an expert in state funding policy at the German Institute of Economic Research (DIW) and co-author of a study study, believes that it is not an effective way to close the “pension gap”.

The key question, about Haan, is who really benefits. He does, he admitted, has superficial logic for older mothers to get the same benefits as those who had their children after 1992.

“But pensions for this generation were significantly higher than for the younger generation,” Haan told DW. “And secondly, it is a ‘watering’ can measure that is equal to all mothers, and so does nothing specifically to fight poverty between the elderly.”

Haan added: “If you really want to reduce the pension gap, you need to change working relationships between men and women by promoting more labor market participation for women, for example, with better care of children.”