CDU rejects retirement age: Stability guaranteed until 2031!

CDU rejects retirement age: Stability guaranteed until 2031!

In the last few days, the discussion about retirement provision in Germany has gained momentum. There is a particular focus on the issue of retirement age. The CDU in Baden-Württemberg, led by Economics Minister Katherina Reiche, has taken a clear position: there should be no increase in the retirement age until 2029. This stance was reiterated by Winfried Mack, the economic policy spokesman for the CDU parliamentary group. He expressly stated that the retirement age should not be increased in this legislative period, although the age limit for the standard old-age pension will be gradually raised to 67 by 2031. According to SWR, longer working hours might seem necessary, but the CDU is striving to provide positive incentives so that older people stay in working life longer.

As part of the pension reform, the new active pension is presented as an important concept. This gives pensioners the opportunity to earn up to 2,000 euros tax-free, which could significantly improve their financial situation after retirement. This initiative is seen as a step to encourage workers beyond the statutory retirement age to participate in the labor market. Mack did not rule out the possibility that higher retirement ages could be considered in the future, as can be seen from a look at countries such as Denmark, where a retirement age of 70 has already been set from 2040. However, critical voices, such as Verena Bentele, President of the social association VdK, warn that the pressure on people who can no longer work for health reasons should be taken into account and are calling for an improvement in the general conditions, for example through more daycare places and nursing assistance.

Important changes and challenges

The ongoing discussion about pension reform can also be understood as a reaction to demographic change and the associated concerns about poverty in old age. The federal government has announced that pension levels should be stabilized at 48 percent of average gross income by 2031. This stabilization is carried out through subsidies from the federal budget, but this could lead to financial challenges in the long term. According to Rentenportal, a sustainability fund will also be set up to strengthen pension finances.

As far as retirement modalities are concerned, the age remains at 67, although people who have paid into pension insurance over the age of 45 are still able to retire without deductions. In addition, the early start pension will be introduced from 2026, under which 10 euros per month will be paid into a retirement savings account for every school child between the ages of 6 and 18. However, critics point out that many cornerstones of the current reforms, such as active pensions, could primarily benefit higher-earning pensioners, while socially weaker groups hardly benefit.

The reality of pensioners in Germany

According to Deutschlandfunk, the reality is often sobering. Over 61 percent of pensioners receive less than 1,200 euros net per month. The situation of single people is particularly worrying, with one in three people having less than 750 euros net at their disposal. Statutory pension insurance, which is financed through a pay-as-you-go system, faces major challenges due to demographic developments. Experts warn of increasing financial bottlenecks, which could be exacerbated by the rising cost of living and the associated pension entitlements. The scientific advisory board of the Ministry of Economic Affairs makes it clear that this development could lead to “suddenly increasing financing problems”.

Overall, it is clear that pension policy in Germany is facing a change that brings with it both new opportunities and significant challenges. The impending changes require a good hand from the government and social associations to take the right measures and, above all, to ensure that future generations will not suffer from the decisions of today's politicians.