Dubai, United Arab Emirates (CNN) – Social media activists circulated videos of an elderly woman “complaining of distress” and the reaction of the Emir of the Asir region, Prince Turki bin Talal bin Abdulaziz, which sparked an interaction.
The Emirate of the Asir region published a video clip on its official page on Twitter, showing the prince’s visit to the elderly woman and what he directed to help her.
And the official Saudi Press Agency reported that the prince visited the citizen, Sharaa Al-Qahtani, in Al-Amwah Governorate.
The agency stated that the prince directed during the visit to “take a number of measures to secure a decent life for her, by finding a residential land and completing procedures for owning it through a platform of provisions, and building and furnishing the house in coordination with the Al-Ber Charity Association in Al-Mawah and the Developmental Housing Association in the region, with the participation of a number of businessmen and members of the local community in the governorate.” In addition to providing a car and driver to support her transportation, and coordinating with the electricity company to deliver electricity, in addition to directing the governorate to follow up on her condition.
On July 1, pensions rose by 5.35 percent (West Germany) and 6.12 percent (ex-GDR) – one of the most drastic increases since the introduction of pension insurance. With inflation this year already at around eight percent, groceries that have become 20 to 50 percent more expensive and energy costs that have risen by at least half, that’s a drop in the bucket.
First Corona, now Russia’s war of aggression in Ukraine with all the economic consequences: Germany’s pensioners are particularly affected by these consequences.
BILD was at a pensioners’ coffee party in an allotment garden in Berlin-Neukölln and asked the elderly: How are you doing?
Horst Mitte (87, 1820 euros net pension) from Berlin-Biesdorf used to be a steel construction worker and is with his wife Inge (84, 1165 euros net), a former office worker, to ex-truck driver Wolfgang Persky (76, 2200 euros net) came into the garden. He has built a little paradise with his partner Pa Königsmann (68, 460 euros net). Pa, who used to work in a fish factory and as a flower woman, grows Thai vegetables and herbs from her homeland in the allotment garden.
Also there are the garden neighbors Rolf Hellmann (75, 1122 euros net), a former travel agent, and the trained hat maker and Berlin skat master Werner Theissen (83), who does not know exactly how much pension he gets: “My wife takes care of it care regarding it”.
The Berlin pensioners at the coffee party in the allotment garden
The sun is burning, the coffee is hot and cake from a Britzer Café is also on the beer garden table under a sunroof on a green lawn.
Horst Mitte, steel-rimmed glasses, white polo shirt, takes a sip of coffee and says: “When I was 16, my grandfather walked from the Kingdom of Saxony to the Kingdom of Prussia for two weeks and worked hard. But then everything broke. My grandparents experienced the great inflation in Berlin at the end of the 1920s. That’s where it comes down to now. The money becomes worthless.”
It started with Corona, now the war in Ukraine. “I remember what war means,” he says. “If something happens now, we won’t even have proper shelters anymore. At the age of ten I walked through a hail of Stalin organs in Biesdorf, which destroyed Frankfurter Allee at the time. The images are coming up once more now, the third world war is just around the corner.”
Horst Mitte (right) talks regarding the war, Rolf Hellmann (left) listens
When the Russians came to the city and the screams of raped women echoed from the houses, his parents wanted to hang themselves and their son in desperation. He just managed to dissuade her.
At that time the Russians were still liberators, following all they were fighting the genocide Hitler. “And now the Russians are claiming that there are Nazis in Ukraine. Where are there Nazis? If anyone uses Nazi methods, it’s now the Russians themselves,” he says.
His wife Inge, who has dyed red hair, says: “The prices are increasing significantly, but there are still a few offers. We stockpile, if something is cheap we buy more. Thank God we have our own home, but the heating is coming at us more severely. Then it’s time to put on a cardigan and shower less. In principle it is a solidarity with the Ukrainians. And it’s not for nothing that people say: ‘The rich Germans’. We are still doing very well globally.”
The allotment garden in Berlin-Neukölln
Her husband says: “Yes, if a crate of beer costs less than ten euros, I’ll just buy three and put them in the garage. But the worst is yet to come, namely the energy costs. This is going to be a big hit. We ate potato peelings at the end of the Great War, that worked somehow, but when you get up to it, the fun stops. Why are the Finns building nuclear power plants and we aren’t? We really have no other choice, we have no resources in the earth. Our politicians should think regarding something.”
Wolfgang Persky, a native of Berlin with a Berlin snout and a friendly smile, says: “When I go to the store, my wallet gets empty. With 30 euros I used to get a pretty big basket, now there’s a lot less in it!”
Wolfgang Persky is worried regarding his money
Rolf Hellmann, who originally comes from Saxony, nods: “When I looked at how much minced meat costs, my eyes fell out of my head. From 2.49 euros to double, that does not catch the pension increase. I’ve now watched and frozen special offers. And I worked on a 450-euro basis until I was 74.”
One thing particularly annoys him: “It’s absurd that we pensioners shouldn’t get the 300 euro flat rate for energy costs. We have almost all cars.”
Persky replies: “And this 9-euro ticket, that’s a chunk that’s been thrown at us, but it’s all useless. Drive to the Baltic Sea for nine euros and then? Everything is more expensive there.”
Werner Theissen, a happy old man, tells how his family is dealing with the increased prices: “My wife cooks more, we go to the restaurant less. My only hobby is still playing skat, once a week in the national league – but that doesn’t make any money. 50 cents for a lost game, that’s still possible.”
Werner Theissen was once Berlin’s treasurer
Wolfgang Persky’s partner Pa has the lowest pension with her 460 euros a month. She, too, makes ends meet as she can. “My dear daughter gives me 250 euros a month, that helps,” she says. “I also buy less, only the most important things. I grow vegetables and herbs here in the garden myself.” She shows fresh Thai basil and coriander from her bed. This tastes like their Thai homeland. “It’s too expensive in stores now,” she says.
Da Koenigsmann grows herbs to save money
The pensioners talk regarding life, the war, the future, grandchildren. How do you think this can all get better?
Wolfgang Persky says: “We survived the corona crisis and were vaccinated three to four times. Now we will do that as well.”
Inge Mitte says: “I hope you can still do something with diplomacy, weapons alone cannot solve it.”
Inge Mitte with her husband Horst. She hopes for diplomacy
But her husband Horst says grimly: “Unfortunately, diplomacy was overslept. The ex-KGB man Putin doesn’t even talk face to face, but with his long table in between. Such a bastard cannot be placated with kind words.”
They still have it good in the green garden between flowers, trees and the chirping of birds. “But a Russian shell might hit here at any time,” says Horst, thinking regarding the past.
The five AFP withdrawals in recent years have reduced the growth dynamism of the Peruvian economy, said David Tuesta, external public policy adviser of the AFP Association during the presentation “Impact of AFP withdrawals on pensions and on the economy of all Peruvians ”.
Tuesta said that each year, the pension system added 0.5% to the country’s annual growth. In addition, it should not be forgotten that any change in the pension system also has a significant impact on the economy, employment and bowl of poverty.
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The also former Minister of Economy noted that the first and second withdrawal occurred during the worst part of the pandemic, causing negative impacts on the labor market. Although it was explained at the time that these withdrawals They were intended to help people who were going through difficult times due to the pandemic, from the third withdrawal the explanation rested rather on the dynamization of the economy.
“Some point out that this is boosting the economy and it is false. The economy was already being revitalized by the pension funds in the system. It was a revitalization with a sustainable perspective because the funds were invested and this generated economic activity, direct and indirect employment and a reduction in poverty rates”
Carlos Casas, main professor of the Academic Department of Economics at the Universidad del Pacífico, agreed that the first two withdrawals they might have been necessary due to the uncertainty that was experienced by the pandemic. However, he assured that the pension funds are already being eaten away and the most affected will be the pensioners.
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higher rates
Tuesta noted that, in the five withdrawals, only with Public Treasury Bonds (BTP), Fund 1, the most conservative, reduced its participation in BTP from 23% to 15%. For its part, Fund 2 reduced BTP holdings from 24% to 17%; and Fund 3, maintained a marginal participation of BTP.
“The sale of BTP meant a 55% drop, going from S/ 40 billion at the start of the pandemic to S/ 18 billion in 2021″he pointed.
He also explained that the rates of public debt are the main reference for setting rates in the corporate bond market and what ends up being generated with the withdrawals it is a higher cost of long-term financing for the private sector. That the BTP has risen, he said, means that now it is going to cost more for the State to finance itself.
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“That money that we see in your pocket is going to be seen in higher interest rates and higher mortgage loans. There we see the loss of dynamism of the economy”I note.
Jorge Guillén, professor of finance at ESAN, explained that investment has a stronger share of GDP than consumption, especially private investment. Thus, I consider that the consumption generated by the sixth withdrawal It won’t boost the economy as much.
However, there will be an important effect on the financial market since the assets of the stock market deteriorate and sovereign bonds will have a higher bowl of interest, as well as a decrease in their prices due to lower demand.
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All of the above explains that the rates of interest increase. “If you have to sell assets, selling the bonds lowers their demand and their price. Interest rates go up and that pushes interest rates up a bit in general”I note.
The finance expert further explained that not only general financing becomes more expensive but also State financing. If with Reactiva Peru they touched us funding sources cheap enough, he said, now our funding sources will not be the same.
“If we look at the State as a person, instead of looking for cheap financing sources because it is a good client, the opposite will happen and that will affect the fiscal deficit, more taxes will be requested. In addition, the debt classification can be downgraded, no more investment will come. It is a vicious circle”he pointed out.
OECD
The Organization for Economic Cooperation and Development (OECD) proposes three necessary guidelines to avoid permanent damage to retirement due to withdrawals: be provided under a criterion of targeting situations of financial urgency; be tax neutral; and a mechanism that ensures the return of withdrawn funds so as not to dent pensions.
“It will be difficult to increase the contribution so that in some way what was taken out is compensated, that is what we mean by the gap that is generated in the long term”Casas said.