The SPD rejects Chancellor Friedrich Merz’s (CDU) proposal to shift the pension system toward much greater private provision.
In a statement to “Handelsblatt”‘s Wednesday edition, SPD vice‑parliamentary group chair Dagmar Schmidt said the party views the statutory pension as a strong and reliable foundation for retirement security. “It has carried us through ups and downs-often delivering higher returns than many capital‑based products” she explained.
While the Social Democrats are open to a capital‑based component that lets workers benefit from investment earnings, Schmidt warned that such a scheme only works if it is financed equally by employees and employers. “We can therefore envision a mandatory company pension to restore a standard‑sustaining retirement for everyone” she added.