The debate surrounding Germany’s pension system is intensifying as policymakers prepare for cabinet decisions on Wednesday. Philipp Türmer, chairman of the Jusos, the Social Democratic Party’s youth wing, is advocating for a more equitable distribution within the current system. He argues for increased wages and the inclusion of all professional groups – encompassing civil servants, members of parliament and self-employed individuals – within the statutory pension scheme.
Türmer emphasized the pressing need to leverage high capital incomes to bolster the security of retirement planning, highlighting that the average pension currently sits only slightly above the poverty line.
Echoing this sentiment, Jette Nietzard, spokesperson for the Green Youth, urged for more substantial reforms. She criticized the reluctance to undertake a genuine pension overhaul and pointed to the potential for resentment between generations. Nietzard asserted that the financial burden of demographic change should be distributed not only based on age but also considering wealth and income. She framed the issue as a conflict of distribution rather than a generational divide.
Nietzard proposes utilizing the substantial private wealth accumulated within Germany to bridge the pension gap, suggesting that sufficient funds are readily available. The cabinet is currently considering a plan to fix the pension level at 48 percent of average income by 2031, alongside an expansion of benefits for mothers.