The FDP is causing a stir in the coalition government in Germany over the budget and the retirement age of 63. The FDP is criticizing a possible 20 percent increase in retirement contributions and is calling for the retirement age of 63 to only be granted to low-income earners. FDP General Secretary Bijan Djir-Sarai is pushing for a fair and rational debate on the issue, suggesting that only low-income earners should be eligible for early retirement. However, Chancellor Olaf Scholz has a different opinion and stated that he does not want to cut spending for retirees in the new budget.
Amidst the debate on the second pension package in the German government, the FDP is advocating for restrictions on the retirement age of 63. Djir-Sarai argues that early retirement is taking valuable skilled workers out of the job market, especially in light of a shortage of skilled workers. The FDP is emphasizing the need for a rational and fair discussion on the issue, with the aim of allowing those who wish to work longer to do so under attractive conditions. The party is also calling for a reduction in pension costs in order to improve the labor market and address demographic challenges.
The FDP is proposing that the retirement age of 63 should only be available to low-income earners in the future and may need to be completely abolished in the long term. The party argues that such demographic giveaways are unsustainable and should not be continued. On the other hand, Chancellor Scholz has rejected the idea of raising the retirement age, emphasizing the importance of maintaining social cohesion. The SPD leader believes that the new budget should not come at the expense of retirees and has criticized the FDP’s proposal for a flexible retirement age.
The FDP is also calling for a more generationally fair budget policy, highlighting the importance of balancing economic growth with social welfare. The party believes that young people should not be burdened with financing pensions, and instead, the focus should be on strengthening businesses and skilled workers. The FDP is advocating for reforms to the pension system, including the introduction of a stock-based pension system similar to Sweden’s model, which would provide individuals with personal accounts and the option of a capital-based supplementary pension.
In March, the German ministries of Labor and Finance reached an agreement on partially funding the statutory pension system. The retirement level is set to be fixed at 48 percent between 2025 and 2029, with contributions gradually increasing to 22.3 percent by 2035. However, the FDP has been pushing for revisions to the agreement, including a lower increase in contributions starting in 2028 and an expansion of the stock-based pension system. The FDP has indicated that it will not support the current pension package in its current form in the Bundestag, calling for a more sustainable approach to pension reform.
