Early start pension in criticism: unions warn of high costs!

Early start pension in criticism: unions warn of high costs!

The discussion about pension reforms in Germany receives fresh swing: On June 4, 2025, the CDU integrated the "early start pension" as part of a new pension package in the coalition committee. This reform provides for monthly deposits of ten euros per child to an old -age provision and is scheduled to start in 2026. But while the coalition remains optimistic, the concerns of the population and numerous unions are growing.

The Social Association VDK expresses massive reviews and emphasizes that the majority of people between the ages will depend on the statutory pension, not on private stock endings. The VDK therefore calls for a stabilization of the pension level and a widening of the revenue base of the statutory pension insurance. The promotion of private share depots with more than one billion euros in tax money is not being targeted. Instead, the VDK is committed to immediate support from single parents and sensible pension solutions such as a basic child protection and attractive company pensions.

unions warn of costs and symbol policy

Serious resistance also comes from ver.di, which describes the early start pension as a "symbolic" and "costly step". Anja Piel from the DGB alerted that with a monthly deposit of ten euros after 60 years, only a pension of around 30 euros gross comes out. In addition, the annual costs of around one billion euros are pointed out, which would favor private insurance companies due to the reform, without providing real benefits for people. Instead, the union calls for a comprehensive strengthening of statutory pension insurance.

The criticism of the unions is supported by experts who warn that the contribution rates will increase and gaps in the pension insurance. The current contribution rate is 18.6 percent and could increase to 19.7 percent by 2027 and even 21.2 percent by 2035. In order to secure the stable pension levels, the Union and SPD would like to anchor the pension level to 48 percent by 2031. However, studies forecast a decline in pension level to 46.9 percent by 2030 and to 44.9 percent by 2045 if no suitable measures are taken.

long -term financing remains unclear

According to the new pension package II, which was discussed in the Bundestag on September 27, 2024, the stop line of the pension level is to be extended over 2025 to 2039. The German pension insurance states that the stabilization of the pension level can strengthen trust in statutory pension insurance by 2039 by 2039. However, a decisive point remains the long -term financing, which also depends on growth, high employment rate and adequate wage development.

Another aspect of the planned reform is the establishment of the “Generation Capital” foundation. From 2036, it is expected to transfer 10 billion euros to the German pension insurance annually. However, experts warn that a significant capital structure and a noticeable relief are hardly to be expected. If the foundation cannot be achieved from 2036, insured persons and employers would have to expect higher contributions. The German pension insurance also demands that no premiums are used for generational capital to secure financial stability in the long term.

The topic of pension reform remains complex and controversial. The different actors have different perspectives that all have to flow into the discussion in order to find a sustainable solution for pension insurance.

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