Concerns have been raised regarding proposed pension reforms in Germany, particularly the planned “Aktivrente” scheme and the commitment to stabilizing the pension level. Eva Maria Welskop-Deffaa, president of the German Caritasverband, has voiced criticism, arguing that the current approach risks creating intergenerational inequities.
Welskop-Deffaa expressed reservations about allowing retirees to earn up to €2,000 tax-free, while younger parents with rising incomes face full tax progression. She deemed this disparity “difficult to explain” and potentially damaging to the perception of fairness.
Regarding the stabilization of the pension level, Welskop-Deffaa considers it an “oversimplified indicator” that fails to accurately reflect the actual disposable income of pensioners. She emphasized the importance of ensuring that individuals who have consistently contributed to the pension system throughout their working lives receive a pension sufficient to cover their basic needs, arguing that failure to do so undermines faith in the system’s integrity. A differentiation within the pension formula, accounting for individuals’ varying income levels over their working careers, warrants consideration, while maintaining a spirit of solidarity in redistribution remains feasible within the current funding structure.
Furthermore, Welskop-Deffaa strongly advocated for mandatory pension insurance for the self-employed. She described this as a long-overdue measure, particularly given the increasingly hybrid nature of work, where many individuals combine employment and self-employment. Limiting pension contributions to portions of income results in a proportionately smaller pension later in life, a situation she believes needs to be addressed. This reform has been promised by successive coalitions but has yet to be implemented, with Welskop-Deffaa stressing the need for its successful implementation this time.