Johannes Winkel, chairman of the Junge Union (JU) and a member of the CDU, says that a broad pension reform could cut Germany’s annual pension spending by more than €50 billion. He argues that future pension increases should be linked to inflation rather than wage growth. According to the International Monetary Fund, adjusting pensions to inflation alone could save up to €45 billion a year, a figure Winkel cites as justification for the measure.
Winkel also calls for the abolition of the “pension at 63” which the government currently spends about €13 billion each year.
In urging a political shift, Winkel criticises the SPD for resisting a comprehensive pension overhaul. He claims the party’s policies ignore the realities of demographic change: “We urgently need to prepare for the demographic shift. The SPD acts as if it doesn’t exist, and that is far from reality”.