CSU politician Florian Dorn is warning against maintaining the “pension at 63,” despite the Pension Commission’s recommendation. Speaking to the “Handelsblatt”, Dorn-who served as one of three members of the Bundestag Pension Commission-stated that the elimination of this entitlement is a core component of the overall reform needed to stabilize the financing of the statutory pension insurance.
He cautioned that if the tax-free pension for long-term contributors is retained, it jeopardizes the entire reform effort and, consequently, the stabilization of the statutory pension system. Dorn pointed out that this privilege costs the solidarity group-meaning tax and contribution payers-several billion euros every year. Furthermore, its continuation places a strain on generational fairness, requires higher contribution rates, and undermines the stability of the pension system.
Dorn clarified that the Pension Age Security Commission did not recommend a complete abolishment, but rather aimed to make the system more targeted. Instead of a broad, expensive system, he suggested it should only be available to those nearing retirement who are unable to work in their profession due to health reasons. Additionally, the Commission proposed that people should continue to have the option of retiring with deductions starting at age 64. He added that individuals could decide whether their accumulated long-term contributions and pension entitlements are sufficient to retire early, with the deductions calculated in a way that minimizes costs to third parties.
