For several years Germany’s political parties have put forward competing proposals for pension reform in a bid to combat the risk of poverty for future retirees. The most recent proposal has come from Wolfgang Schäuble (CDU party), German Minister for Finance who on 09 May indicated a willingness to subsidize low wage earners’ company pensions. Previously the CDU member had argued for raising the legal retirement age much to the disappointment of both the Social Democrats and the unions. Andrea Nahles (SPD party), the Minister for Social Affairs and Labor, rejected his idea out of hand and she announced a fundamental reform to the pension system the main thrusts of which she will present this autumn. At the end of the summer the Confederation of German Unions, the DGB, will launch a campaign to overhaul pensions. Pensions are set to become a major theme in the autumn 2017 legislative elections’ campaigns.
Pensions, a worrying issue. Nine years after CDU/SPD coalition government adopted the controversial the law on retirement at 67 (c.f. article No. 070221), which in January 2014 was followed up by two changes (retirement at 63 for those with 45 years of contributions and revaluing mothers’ pensions, c.f. article No. 8134), debate over pension reforms has once again come to the fore. German’s are worried about their pensions.
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