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Pension Forecast Lifts Payouts and Costs, Imperiling December Vote as Linke Considers Backing

Fresh official projections of larger pension hikes have intensified affordability warnings from young Union lawmakers as well as business leaders.

Overview

  • The cabinet-approved Rentenversicherungsbericht projects a 3.73% increase from July 2026 and roughly 4.75% in 2027, with pensions up about 45% by 2039, reserves at €51.9 billion, and contribution rates rising toward about 21.2% by 2039.
  • Eighteen CDU/CSU backbenchers from the Young Group call the draft not acceptable and threaten to withhold votes in December, a move that could erase the coalition’s working majority.
  • Union floor leader Jens Spahn urges a swift compromise, while JU chief Johannes Winkel demands removing the post‑2031 guarantee to hold the pension level near 48%.
  • Employer president Rainer Dulger labels the plan unaffordable, and economist Martin Werding estimates the stabilization pledge could cost around €145 billion between 2029 and 2040.
  • Die Linke says it is weighing a yes vote that could salvage passage, with leaders warning any dilution of the package would end their openness to support.