Social advocacy groups are signaling support for raising pension contributions as part of the debate on the future of the statutory pension system. Michaela Engelmeier, the chairwoman of the German Social Association, told newspapers from the Funke Media Group that the public is prepared to pay higher contribution rates if they can be assured of a good pension in old age. While acknowledging that future old-age security will require more funding, Engelmeier argued that the current debate fails because it focuses too heavily on the sheer size of the contributions.
According to Engelmeier, the underlying issue has been obscured in public discourse: the true question is how the necessary money will be raised. She stated that the fundamental decision facing Germany is whether to finance the system through the existing solidarity-based, pay-as-you-go model-shared equally by employers and employees-or to rely on private financing.
Engelmeier maintained that the statutory pension is often misrepresented in public discussion. She stressed that while reforms are necessary, the current contribution financing system is inherently stable, reliable, and solidary. Therefore, she called for a balanced set of measures: non-insurance benefits should be funded by taxes, all employed individuals must be included in the public pension insurance, and only thereafter should the need for a moderate increase in the contribution rate be examined.
The Social Association VdK Deutschland echoed this view, also pointing to the public’s willingness to accept higher payments in exchange for more stable or even improved benefits. VdK President Verena Bentele introduced a five-point program for the long-term financing of public pensions. This plan proposes raising federal subsidies and incorporating civil servants, alongside increasing contribution ceilings and strengthening the responsibility of employers in offsetting demographic increases.
Since the pension is still financed by contributions-which derive from employee wages-VdK stressed the urgency of consistently implementing measures designed to increase women’s employment and better integrate refugees and older workers into the labor market. Bentele added that leveraging labor market potential while simultaneously building up high-quality care and educational infrastructure remains central to distributing the demographic pressures and ultimately limiting the rise in contribution rates.
The issue of rising contribution rates due to demographic shifts has been a long-standing concern. Multiple media outlets reported that contributions could increase from the current rate of 18.6 percent to 19.9 percent starting in 2028. The Federal Pension Insurance confirmed these figures to the Funke newspapers. Furthermore, the pension institution estimates that contributions could potentially rise to 21.1 percent by 2040.
