The Seeheimer Circle within the SPD parliamentary group has published a strategy paper calling for significant reforms to combat poverty among women in old age. The primary proposal is to reduce the minimum contribution years required for the basic pension (Grundrente) to 25 years.
According to the group, structural poverty often affects women due to fluctuating careers and periods of part-time work. They argue that the current contribution threshold often exceeds what women can achieve, leaving them financially precarious despite decades of work.
The strategy paper, titled “Promoting Women for a Strong Democracy” highlights the severe pension gap: currently, 21.6 percent of women aged 65 or older are deemed at risk of poverty, compared to 17.1 percent of men. The document warns that “today’s part-time trap is tomorrow’s old-age poverty” noting that caregiving duties-which often lead to interrupted work lives-have accumulated to create a Gender Pension Gap of 46 percent, representing the percentage difference in pension levels between men and women.
Beyond lowering the minimum required contribution period, the conservative wing of the SPD faction demands that unpaid care work be recognized much more significantly in pension calculations. They also advocate for substantially increasing the pension points allocated for children and implementing a pension bonus for households with three or more children. By lowering the minimum contribution years to 25, the Seeheimer Circle expects to considerably expand the pool of beneficiaries.