Overview

• Under the new plan, all mothers receive three pension points per child regardless of birth year, ending the previous 2.5-point rate for births before 1992.
• Around 9.8 million mothers are set to benefit from equal pension credits, with the expansion funded from general taxation to spare contributors.
• CDU/CSU and SPD lawmakers disagree on implementation speed, with the CSU demanding immediate enactment and the SPD backing a phased rollout.
• The statutory retirement age will remain at 67 as the government introduces voluntary incentives such as tax-free extra earnings to extend working lives.
• The Bundesbank has criticized the reform for lacking structural change and urged a linkage of retirement age to life expectancy to address demographic pressures.