Germany's Expanded 'Mütterrente' Faces Scrutiny Over Costs and Funding

The proposed pension reform aims to address past inequalities but raises concerns about financial sustainability and limited individual benefits.

The proposed expansion of the 'Mütterrente' seeks to equalize pension benefits for mothers of children born before and after 1992 by granting three years of credited parental leave for all.
Critics, including Deutsche Rentenversicherung President Gundula Roßbach, highlight the plan's estimated annual cost of €5 billion and lack of clear funding mechanisms.
Roßbach warns that without government funding, the reform could lead to a 0.25% increase in pension contribution rates, pushing them above 19% by 2027.
The reform's cost-benefit balance is questioned, as individual recipients would see a modest monthly increase of approximately €20, while significant public funds are required.
The debate reflects broader tensions about addressing historical inequalities through the pension system versus focusing reforms on future sustainability.