A prominent member of Germany’s Christian Democratic Union (CDU) is advocating for substantial reforms to the country’s pension system, centering on a later retirement age and moderated increases to pension benefits.
Pascal Reddig, CDU parliamentarian and Chairman of the Young Group within the CDU/CSU parliamentary faction, argues that a fundamental overhaul is necessary to distribute the financial burden more equitably across generations. He expressed concern that the current system disproportionately disadvantages younger workers.
Reddig stated that any proposals emanating from the current government’s pension commission must be swiftly implemented. He suggested a willingness to consider increasing the retirement age, potentially to 70, a proposition supported by many economists and pension experts. Recognizing the political challenges, he proposed a compromise involving linking the retirement age to increasing life expectancy, leading to a gradual increase over time.
Addressing early retirement schemes, Reddig emphasized that adjustments are needed for those capable of continuing to work, proposing significantly higher penalties for those choosing to retire early. He specifically excluded physically demanding professions, such as roofing and nursing, from these proposed changes. He advocated for the effective abolishment of the current possibility to retire at 63.
Beyond the retirement age, Reddig called for a comprehensive reform of the mechanism for adjusting pension levels. He supports reinstating and strengthening the “sustainability factor” – a tool designed to moderate annual pension increases when the number of pensioners grows relative to the number of contributors – which he asserts has been effectively suspended. He even suggested doubling this factor to ensure a fairer distribution of the costs associated with an aging population.
Furthermore, the CDU parliamentarian proposed decoupling future increases to existing pensions from wage growth, instead linking them to inflation. He argues this would be a more equitable approach and help contain costs, warning that substantial pension increases, like those seen in the past, will prove unsustainable without jeopardizing the long-term viability of the pension system.