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Bas Endorses Contributions-Years Retirement Model as Government Readies Commission Review

A review is due this month after Bas’s TV remarks propelled the idea into formal debate.

Overview

  • Economist Jens Südekum proposed linking pension eligibility to insured years rather than a fixed age, an approach Bas called “basically a good idea.”
  • Left-wing lawmakers and several economists warned the model would disadvantage students, caregivers and those with interrupted careers, with IW Köln’s Jochen Pimpertz calling it “economic nonsense.”
  • CSU leader Markus Söder and CDU officials signaled openness to discuss the concept, while the employers’ federation BDA rejected it as a rebranding of the 45‑years early pension.
  • The coalition said a pensions commission will be established before Christmas to weigh this and other options after passing a package that holds the statutory level at 48 percent through 2031.
  • In parallel, the finance ministry’s draft would replace Riester plans from 2027 with a cost‑capped “Altersvorsorgedepot” offering standard products and a choice between guaranteed and return‑oriented options; OECD data place Germany’s net replacement rate near 53 percent.