Overview

• Labour Minister Bärbel Bas has proposed expanding Germany's statutory pension system to include new civil servants, self-employed individuals, and politicians to boost contributions.
• Economists warn the proposal offers short-term financial relief but increases long-term liabilities due to future pension obligations.
• A simulation by the German Council of Economic Experts predicts modest financial benefits in the 2030s but higher costs from the 2070s onward.
• Experts, including Veronika Grimm, advocate structural reforms such as raising the retirement age with life expectancy and indexing pensions to prices instead of wages.
• The government plans to convene a pension commission to address demographic and fiscal challenges, while updated tax thresholds and rising taxable pension shares are already in effect.