To ensure the long-term viability of the pension system as the large birth cohorts retire, the chair of the German Confederation of Trade Unions (DGB), Yasmin Fahimi, has advocated for broadening the contributor base to the statutory pension insurance.
“We can and must stabilize the pension system – primarily by having more people contribute” Fahimi stated in an interview with Funke-Mediengruppe newspapers. She emphasized that self-employed individuals should be included, noting that many currently rely on basic income support in their later years. Furthermore, she suggested that elected officials should also contribute, though the impact would likely be limited.
Expanding the contributor base requires broader employment opportunities, Fahimi continued. This could be achieved through sustainable integration of individuals into the labor market, increased immigration and reducing the prevalence of part-time work among women.
Fahimi dismissed the possibility of incorporating civil servants into the statutory pension insurance. She asserted that such a move would be legally complex, financially unsustainable for state governments and would not advance the necessary dialogue.
Beyond increasing contributions, the DGB chair called for greater federal financial support for the pension system, fully funded through tax revenue. This would help to mitigate the demographic challenges, which are expected to lessen after 2035 as the dominant birth cohorts are impacted by mortality rates.
Fahimi also rejected discussions about extending the standard working lifetime. She argued that individuals who have worked for 45 years should be entitled to a full pension, having “earned their retirement” through dedicated service. She raised questions about fairness, suggesting that individuals entering the workforce later in life should not be afforded the same retirement benefits as those who began working at a younger age. Implementing a mandatory minimum insurance period that would necessitate later retirement for those entering the workforce at an older age would likely face strong public opposition.
The impact of rising rates of disability and long-term illness was also highlighted as a factor in the pension debate.
The proposed “activation pension” from the current governing coalition drew a skeptical response from Fahimi. She doubts the measure will significantly increase employment and fears it could primarily benefit those already working beyond the standard retirement age. While she supports individuals who desire to continue working past the official retirement age, she cautioned against situations where people are forced to work well into old age due to inadequate pension income.