German parties unite on bold pension reform to secure future stability

Stefan Nacke of the CDU and Armin Grau of the Green Party have reached a rare cross-party agreement on pension reform in Germany. Their joint demands aim to reshape the country’s statutory pension system with a focus on stability and fairness. Nacke and Grau propose strengthening the statutory pension system to keep benefit levels stable and, where possible, raise them over time. They insist pension policy should not become a partisan issue but should instead enjoy broad democratic support.

To secure funding, they suggest new collective mechanisms to expand the financial base beyond the current pay-as-you-go model. They also demand mandatory occupational pensions, co-financed by all employers, to guarantee adequate pension access for every employee. Federal subsidies for pensions, they argue, must cover all non-contribution-based benefits in full.

The politicians criticise mini-jobs for eroding pension entitlements and weakening solidarity within the system. They also oppose the 'pension at 63' scheme for long-term contributors, citing its negative incentives and impact on the labour market. Instead, they call for measures to counter early retirement trends by improving health and workplace conditions to extend effective working lives. Their proposals seek to ensure long-term pension stability without shifting costs onto workers or employers. The reforms would also address gaps in coverage and discourage policies that reduce labour market participation.