The junior wing of Germany’s Social Democratic Party (SPD), the Jusos, are poised to inject a radical shake-up into the ongoing pension debate, advocating for sweeping reforms and a significant increase in the pension level at the upcoming federal congress in Mannheim. Their ambitious proposals, detailed in an initiative document obtained by the “Rheinische Post” signal a growing rift within the SPD over the future of the social welfare system and the priorities for younger generations.
At the heart of the Jusos’ demands lies a call to raise the pension level to 53 percent, a substantial increase from the current 48 percent. Citing concerns that average pensions currently sit only marginally above the poverty line, the Jusos argue that failing to act risks jeopardizing the long-term viability of the system and undermining the prospects of younger workers. The demand reflects a growing perception amongst young voters that the current trajectory leaves them exposed to a precarious retirement.
Funding this ambitious plan, however, involves a significant broadening of the contributions base. The Jusos propose incorporating all professional groups – including the self-employed, parliamentarians and civil servants – into the statutory pension scheme. Critically, they are pushing for the abolition of the contribution assessment limit, currently shielding higher earners from proportionally contributing to the system. Acknowledging that pension income is subject to income tax, the Jusos contend that progressive taxation will mitigate any excessively high payments resulting from this measure.
Beyond pensions, the initiative document unveils a surprisingly comprehensive overhaul of the German healthcare system. The Jusos advocate for the abolition of both statutory and private health insurance, replacing them with a universal citizen’s insurance scheme – a move they believe could potentially reduce contributions by as much as 3.8 percentage points.
Furthermore, they outline a proposed “relief reflex” designed to counteract the financial burden of increased social security contributions on low- and middle-income earners. This mechanism would involve a corresponding reduction in income tax, with direct payments to those earning too little to pay income tax but still contributing to social security. Concurrent with this, the Jusos insist on a heavier taxation of high incomes and substantial assets.
The document also delivers a stinging critique of Labor Minister and SPD leader, Bärbel Bas’s proposed overhaul of the Bürgergeld (basic income) system, characterizing it as a form of “harassment”. The Jusos strongly oppose planned intensification of sanctions, viewing them as detrimental to recipients’ “socioeconomic and socioculture existence minimum”. They warn that benefit cuts, particularly total sanctions, can lead to homelessness and destitution.
The Jusos’ bold proposals are expected to spark considerable debate within the SPD and will likely be presented as a direct challenge to the current government’s social policy direction. Whether their ambitious agenda will gain traction at the federal congress remains to be seen, but their intervention highlights a clear generational divide within the party and underscores the escalating pressure to drastically redefine Germany’s social safety net.