Title: Pension reform under pressure: How CDU/CSU and SPD want to shape the future

pension plans of the federal government in the coalition agreement | Personal

In the coalition agreement between the CDU/CSU and SPD, significant changes in the pension system are taken into account, but without making significant adjustments at the standard age limit. This is particularly relevant because the average life expectancy in Germany continuously increases, which exacerbates the challenges in pension financing.

Demographic development and pension references

The pension reference times have extended over decades. This represents an increase in the working hours, while at the same time the birth rate has decreased continuously. Demographic change means that fewer and fewer people have to pay for a growing number of pensioners, which could trigger an imbalance in pension insurance in the long term. In 2023, Germany recorded a birth deficit of almost 340,000 people, which reinforces the need for social and political adjustments.

fiscal challenges and tax grants

The funding of the pension insurance takes place mainly through a affiliation system in which the younger generation finances the pensions of the older generations. The increasing tax subsidy for statutory pension insurance is expected to continue to grow in the coming years. In 2024, this was already over 110 billion euros, which corresponds to around 23 percent of the total federal budget. Forecasts indicate a significant increase in social security contributions, which could endanger the economic stability of the younger generation in the long term.

planned reforms and incentives

The coalition is committed to securing the pension level and creating incentives for longer work. This includes new possibilities for additional earnings that enable pensioners to receive tax -free additional remuneration during the pension. In addition, the regulations for the re -employment of older workers should be relaxed with previous employers in order to facilitate return to professional life.

long -term perspectives and generational solutions

Suggestions for increasing the standard age limit have not yet been discussed, but alternative approaches are discussed that provide an adaptation of the pension claims and more flexible handling of the contributions. A discussion about generation equity becomes essential to maintain trust in the affluent system. The new measures should not only meet the current challenges, but also present a sustainable solution for future generations.

In summary, it can be said that the pension plans in the coalition agreement contain important approaches to reform the pension system, but miss a brave step towards a sustainable and generational solution.