(de-news.net) – During the first reading of the Pension Package II bill in the German Bundestag, Labor Minister Heil (SPD) emphasized the need to renew the generational contract without pitting generations against each other. FDP parliamentary manager Vogel warned against a noticeable increase in pension contributions, stating the current bill is not acceptable and needs revision. The FDP insists that pension contributions should not rise further. Vogel suggested that countries like Sweden, which use more stocks, manage to increase pension levels without raising contributions. He argued for a shift to a stock-based pension system to keep fees at an affordable level. The bill proposes introducing a stock-based pension. From the mid-2030s, returns from a state fund, called generational capital, are expected to ease the burden on the pension system. The government aims to stabilize pensions without claiming higher fees.
Young Liberals chair Brandmann called for significant improvements in future generations’ pensions. Juso leader Türmer, on his part, stressed the need for targeted measures for young people, similar to those in the Pension Package II for retirees and workers. The Social Association of Germany (SoVD) supports the swift passage of the bill, while the Young Union criticized it as an “attack on the young generation” and threatened legal action before the Federal Constitutional Court, if necessary.
Chancellor Scholz wishes the package be passed soon, aiming for parliamentary approval before the 2025 budget in November. He defended the early retirement at 63 after 45 years of contributions, arguing that those who start working at 17 and contribute for five decades deserve certainty about their pensions. He assured that the younger generation would not be overly burdened.
The coalition has agreed to maintain the pension level at 48 percent, which requires higher contributions from both employees and employers. As of December 2023, nearly eight million people aged 55 to the standard retirement age were employed in Germany, the highest number in over 20 years, according to numbers published by the Federal Employment Agency.
