Germany's CDU Slams Proposed 'Activity Pension' Plan
Politics

Germany’s CDU Slams Proposed ‘Activity Pension’ Plan

Internal divisions are emerging within the Union regarding the planned introduction of the “Aktivrente” scheme, slated to commence on January 1, 2026. Following criticisms from employer associations and trade unions, resistance is now voiced by the CDU’s Economic Council.

Wolfgang Steiger, Secretary General of the CDU, stated in an interview with “Bild” that the Aktivrente “sends conflicting signals”. He argued that providing expensive financial incentives for early retirement while simultaneously implementing other costly measures to counter it is illogical. Steiger emphasized that a sustainable pension policy should focus on eliminating incentives for early retirement and linking the retirement age to increasing life expectancy.

He also criticized the government’s actions, such as the recent increase in the contribution calculation base by Labour Minister Bärbel Bas (SPD), which he believes places a heavier burden on both employees and employers, thereby weakening the competitiveness of Germany as a business location.

However, CDU Secretary General Carsten Linnemann openly supported the reform. He declared that he was “glad the Aktivrente is coming” and that he would not allow it to be undermined. Addressing the critics, he advocated for a trial-and-error approach, stating, “Let’s simply try it out”. Linnemann’s vision includes allowing individuals who have reached the statutory retirement age the option to continue working voluntarily and earn up to €2,000 tax-free with their previous employer. He characterized it as a “good pension reform”.