Germany's Pension Reform Faces Rising Criticism Over Costs and Adequacy

Employers and left-wing critics challenge the Union-SPD coalition's pension plan, citing unsustainable costs and insufficient measures to address old-age poverty.

The Union-SPD coalition's pension reform guarantees a 48% pension level until 2031, with estimated costs of €50 billion funded by the state.
Employers warn of potential increases in contribution rates from 18.6% to over 20%, impacting labor costs and workers' net income.
Left-wing politician Heidi Reichinnek calls for raising the pension level to 53%, arguing the current plan inadequately addresses old-age poverty, particularly for women.
Critics, including Reichinnek, oppose the Aktivrente initiative, which incentivizes continued work after retirement, citing its insensitivity to physically demanding professions.
Employers support private pension measures like Frühstartrente and Aktivrente but criticize the overall cost structure of the reform as unsustainable.

DER SPIEGEL

Westdeutsche Allgemeine Zeitung