An expert commission tasked by the federal government has presented a comprehensive package containing 33 proposals aimed at reforming the pension system. Key suggestions include the abolition of early retirement at age 63, changes to minimum wage jobs (Minijobs), broadening the base of contributors, and implementing a slower pace of increases. Furthermore, the experts recommend introducing a supplementary pension funded by capital investments.
According to a Forsa survey conducted for “Stern” and RTL, only 35 percent of Germans believe these proposals are balanced, while 61 percent do not share that assessment. Four percent remained undecided. The proposed pension reform has the potential to affect millions of people in Germany. Particularly contentious is the near-complete scaling back of Minijobs-low-paid employment where workers do not pay social contributions. Currently, earnings are capped at €603 per month, and approximately 6.8 million individuals are registered at the Minijob center, over 60 percent of whom are women.
Another point of significant debate is the elimination of the early retirement option at age 63 for those with 45 years of service without deductions. Proponents of the reform argue that this option primarily benefited high-earning male workers with continuous career paths, rather than the low-wage laborers often cited. Instead, the regular retirement age is slated to be adjusted based on life expectancy, meaning it will continue to rise. Additionally, the experts questioned the current status of tenured teachers, proposing limitations on pensions and a stronger alignment with the developments in the statutory pension insurance.
In terms of public sentiment, 69 percent of active workers view the proposals as unjust, a significantly lower figure than the 48 percent reported by retirees. Among those supportive of the commission’s plans-believing the proposals fulfill the goal of securing a reliable old-age safety net without overburdening contributors-the CDU/CSU party supporters (57 percent) and the Greens (52 percent) are the most inclined. Conversely, support is lower among SPD supporters (43 percent), while the Left Party and AfD supporters reported only marginal levels of approval (25 percent and 13 percent, respectively).
