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Pension

July 25, 2005

As more citizens live longer and have fewer children, the number of retired workers grows while the number or new workers declines. The situation poses serious consequences for the state's pension plans.

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More senior citizens are living longer and enjoying lifeImage: AP

SPD

The goal is to keep retirement age at 65. At the moment, a good number of Germans opt for an early retirement package before the age of 60. Increasing the number or workers who stay employed until 65 would reduce the draw on state pension funds. At the same time the SPD continues to endorse an additional private capital insurance plan.

CDU/CSU

Starting Jan. 1, 2007 all parents of newborn children will receive a reduction in their monthly pension dues. They will pay 50 euros less per child until the child has reached 12 years of age. To finance the bonus, the union bloc plans to scratch the home owners' subsidy. The CDU/CSU also wants to reduce the number of years Germans spend studying and at the same time raise the retirement age.

Greens

The Greens are in favor of more state backing for private pension plans. The party also wants to see a new "generation contract" which would share the burden across the generations, but there has been no mention of details in their election platform.

FDP

The FDP wants to keep the retirement age at 65. Contributions to the state retirement plan should not be higher than 19 percent of income; and the pension should not be reduced.

Left Party

The new party wants to introduce a minimum pension of 800 euros per month. It plans to convert the current state retirement insurance plan into a workers' pension for all categories of jobs – unlike the current system which allows some people to opt out. Out of solidarity, those who earn more would be required to pay more but without an increase in pension.

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