Overview
- Sigmar Gabriel outlined the proposal in an interview published by Bild am Sonntag on 7 September, presenting it as his personal plan rather than government policy.
- He said the shift would mean no retiree loses purchasing power but would forgo gains beyond inflation because younger cohorts cannot finance faster growth.
- Germany currently adjusts pensions largely based on prior-year wage development, and benefits rose by 3.74 percent on 1 July.
- Official data show consumer prices up 2.2 percent year over year in August, after 2.0 percent in both June and July, suggesting smaller increases under inflation-only indexing if wages outpace prices.
- Gabriel also suggested introducing a child existence minimum within social insurance that is exempt from contributions while consolidating multiple family support funds.