The German Pension System is based on an intergenerational contract. Working younger people pay for the pensions of older people. But this social intergenerational contract is coming under pressure because of an increasingly ageing population. More and more pensioners face a smaller number of contributors. In the 1960s there were 19 pensioners per 100 tax-payers in work, now there are 34. It is predicted that there will be 50 per 100 by 2030 and even 65 per 100 in 2060.
Pensions have taken on a kind of symbolic importance. A generational conflict could break out or there could be a fair agreement.
The increasing financial burden cannot be borne by one generation alone, neither by a younger nor an older alone. All generations should share the burden when unfavourable demography makes financing the system increasingly difficult. The FRFG advocates an intergenerationally just pension policy which shares the burden as equally as possible among the young and the elderly. Today's pension system in Germany is in urgent need of reform. The system has to secure justice between (intergenerational justice) and within (social justice) the generations.
We have 6 key demands:
1
Any deficits in pension systems should be covered by both the working tax-payers and the pensioners themselves.
2
Sustainability must be the key principle of pension systems. Demographic change must be taken into account.
3
The age at which you can claim your state pension should start to rise automatically with life expectancy by 2031.
4
The federal government must cover outgoings which exceed contributions coming in transparently.
5
Private pensions should be made more attractive through measures like tax-relief or matched contributions so that fewer people have to rely on nothing but the state pension.
6
We must bring in contributory pension schemes for ALL Germans. Civil servants, members of the Bundestag and regional parliaments included.
"Rente und Pensionen"
FRFG's German Position Paper from March 2020 on pension systems.
"Mit der Erwerbstätigenversicherung jetzt beginnen: mehr Solidarität und weniger Generationen-Ungerechtigkeit"
FRFG's German Position Paper from March 2024 on bringing in contributory pension schemes for all Germans, including civil servants, members of the Bundestag and regional parliaments.