Pension Reform Sparks Union Debate

Pension Reform Sparks Union Debate

The upcoming introduction of the “Aktivrente” program, slated for January 1, 2026, is sparking internal debates within the conservative Union party. Following criticism from employer associations and trade unions, opposition has now emerged from the CDU’s Economic Council.

Speaking to “Bild”, Secretary General Wolfgang Steiger expressed concern that the program sends mixed signals. He argued that incentivizing early retirement with costly financial measures while simultaneously employing other expensive incentives to counteract it is illogical. Steiger emphasized that a sustainable pension policy involves eliminating incentives for early retirement and linking the retirement age to increasing life expectancy.

He further criticized the government’s approach, asserting that measures such as the recent increase in contribution assessment limits by Labour Minister Bärbel Bas (SPD) place a heavier burden on both employees and employers, potentially weakening Germany’s economic competitiveness.

However, Secretary General Carsten Linnemann strongly defended the reforms. He welcomed the introduction of the “Aktivrente” program and dismissed criticism, stating, “I am glad that the Aktivrente is now coming- I won’t let anyone ruin it”. He pointed out that individuals reaching the statutory retirement age should be permitted to continue working voluntarily and allowed to earn up to €2,000 tax-free with their current employer. Linnemann characterized the program as “a good pension reform”.