The German Federal Minister of Labour, Bärbel Bas, has firmly rejected any proposals to reduce the level of state pensions. In an interview with ZDF Morgenmagazin on Wednesday, Minister Bas emphasized the importance of ensuring a secure financial future for those who have contributed to the nation’s development throughout their working lives. She stressed that individuals who have worked diligently deserve the assurance that they can maintain a comfortable standard of living during their retirement.
To bolster the long-term viability of the pension system, the government is exploring several strategies. These include the introduction of an “activation pension” – designed to incentivize continued engagement in the workforce – and a “early start pension” which aims to provide options for those wishing to retire earlier while accounting for reduced benefits. Strengthening company pensions, or “occupational pensions” is also a key priority, particularly in eastern Germany where a significant majority (74%) of citizens rely solely on the statutory pension system due to limited access to occupational pension schemes.
The government is also considering lifting the so-called “prior employment ban” a measure intended to facilitate longer working careers. This would allow individuals receiving pensions to continue working for their previous employers. Minister Bas clarified that while encouraging longer working lives is a goal, mandating work until age 70 would effectively constitute a pension reduction for many and such a blanket requirement is not under consideration.
