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

Proposals by CDU/CSU and SPD to stabilize pensions at 48% and expand benefits spark financial sustainability concerns.

The proposed pension reforms could increase contribution rates from the current 18.6% to as high as 22.9% by 2040, according to Deutsche Rentenversicherung projections.
The expansion of the 'Mütterrente' is estimated to cost five billion euros annually, raising questions about funding mechanisms.
The CDU Economic Council opposes higher contributions and advocates raising the retirement age as an alternative solution to demographic pressures.
Economic experts argue that extending the retirement age beyond 67 is necessary to prevent financial strain on younger generations.
Coalition plans also include maintaining retirement eligibility after 45 years of contributions and expanding benefits for parents, regardless of children's birth year.