The co-leader of Germany’s Green Party, Franziska Brantner, has prompted discussion regarding the future of the scheme allowing retirement at 63 after 45 years of contributions, often referred to as “Rente mit 63.
In remarks to the “Handelsblatt” newspaper, Brantner questioned whether the scheme continues to primarily benefit its originally intended demographic – individuals in physically and mentally demanding professions. She suggested the program is increasingly utilized for purposes beyond its initial scope, such as facilitating corporate restructuring, arguing that the state should not be responsible for such applications. This statement marks a shift from the Green Party’s position outlined in their February 2025 federal election program, which advocated for maintaining the existing scheme. However, Brantner reiterated her opposition to raising the standard retirement age.
Brantner clarified that simply eliminating early retirement options would be insufficient to ensure the long-term stability of the German pension system. She proposed the establishment of a “citizen fund” as a capital-funded pillar for retirement provision. This fund, she explained, would be initially seeded with public funds and subsequently invested either in capital markets or directly into companies. Critically, the fund would be accessible not only to those covered by statutory pension insurance but also offer a replacement for the Riester pension scheme for private provision, potentially encompassing civil servants, the self-employed and elected officials. While a mandatory “citizen insurance” scheme is not currently viewed as a constructive approach, Brantner believes the proposed fund presents a viable means of stabilizing the pension system through broader participation.
