German Pension Reform Plans Face Criticism Over Rising Costs and Contribution Rates

Proposals to expand the 'Mütterrente' and stabilize pensions at 48% spark concerns about financial sustainability and demographic pressures.

The Deutsche Rentenversicherung warns that pension contribution rates could rise from the current 18.6% to 22.9% by 2040 under proposed reforms.
The expansion of the 'Mütterrente,' granting three pension points to all parents, is estimated to cost approximately five billion euros annually.
If the 'Mütterrente' is funded through pension contributions rather than the federal budget, rates could increase by an additional 0.2 percentage points.
DRV President Gundula Roßbach has criticized the 'Mütterrente' expansion as an expensive redistribution measure and questioned its financial viability.
The CDU-Wirtschaftsrat has suggested raising the retirement age as an alternative to avoid further burdening contributors.