Economist Martin Werding, who serves on the Expert Council of the Federal Government and the Pension Commission, has cautioned the governing coalition against reopening the package of reform proposals for the pension system or removing individual measures. Werding told “Capital” that the early retirement option at 45 contribution years, known as the “pension at 63,” is essentially a special rule for workers who earn above average. He warned, “If you allow those who are well-off to keep their special rules, then who else will be willing to accept the burdens of the reforms?”
The Commission has striven to balance the financial pressures that a major pension reform involves so that the burden is distributed reasonably among everyone. The proposed package includes considerations for employees, employers, pensioners, and freelancers; removing one group now would undermine the entire package. “These big elements must work together, otherwise the whole thing won’t function,” Werding emphasized.
The expert’s warning comes in response to statements from factions within the Union and the SPD who are advocating for the continuation of the pension at 63. This movement was initially started by three East German CDU state prime ministers, along with the head of the government of Mecklenburg-Vorpommern, Manuela Schwesig. Similar demands are now emerging from SPD state leaders in the historically western states of Germany. In contrast, Chancellor Friedrich Merz (CDU) had previously announced before the summer break that the Commission’s reform proposals would now be implemented entirely and without compromise.
