FDP General Secretary Calls for “Retirement at 63 only for low earners” – In an interview, FDP General Secretary Bijan Djir-Sarai emphasized the need to have a fair and factual discussion about pensions. He suggested that retirement at 63 should only be granted to low earners. The government is currently discussing the financing of the Retirement Package II. Djir-Sarai expressed concerns that allowing retirement at 63 takes valuable skilled workers out of the labor market, especially in the face of a shortage of skilled workers. He stressed the importance for policy makers to have a fair and factual debate and suggested that those who want to work longer should be able to do so under attractive conditions.
Concerns Over Cost and Impact on Labor Market – The social policy spokesperson of the FDP parliamentary group, Pascal Kober, highlighted that retirement at 63 is expensive and harms the labor market. He emphasized the need to consider these factors in the parliamentary discussions around the Retirement Package II, as it is important to reduce pension costs. Max Mordhorst, who represents the FDP in the Finance Committee of the Bundestag, mentioned that it could be possible for retirement at 63 to only be available for low earners in the future. He also suggested that eventually, it should be completely abolished. Mordhorst argued that such demographic gifts should not be affordable and do not make sense in the long term.
Agreement on Capital Funding for Pension – The Ministry of Labor lead by Hubertus Heil (SPD) and the Finance Ministry lead by Christian Lindner (FDP) reached an agreement in March to partially fund the statutory pension with capital. The retirement level is set to be fixed at 48 percent for the period after 2025 until 2029. Contributions are expected to rise gradually, reaching 22.3 percent by 2035. This agreement aims to stabilize the pension system and ensure long-term sustainability.
Calls for Amendments to the Retirement Package – The FDP has been vocal about the need for improvements to the Retirement Package. The FDP parliamentary group announced that they will not approve the current form of the Retirement Package in the Bundestag. They are advocating for a slower increase in pension contributions starting from 2028 and the expansion of the so-called stock pension. These demands are part of the party’s efforts to make the pension system more sustainable while addressing the challenges posed by an aging population and a changing labor market.
