labour market
Calls for longer work are getting louder
An elderly woman works at the computer: “Those who retire earlier receive a lower pension, those who retire later receive more.” photo
© Franziska Gabbert/dpa
Does the work of many older people get on their bones, as the SPD believes? Or should early retirement without deductions be abolished entirely? Politicians are discussing the retirement age.
In view of the growing number of pensioners, there are increasing calls for older workers to remain in the workforce longer. He is certain “that increasing life expectancy must also be associated with increasing working life,” said the parliamentary manager of the Union faction, Thorsten Frei (CDU).
The debate was initiated by Chancellor Olaf Scholz (SPD). In the future, more people than before should actually work until the applicable retirement age, Scholz said a few days ago. CDU leader Friedrich Merz offered the traffic light talks about the future of pensions.
“There must be no trend towards early retirement”
Employer President Rainer Dulger told the dpa: “The Chancellor is right: there must be no trend towards early retirement.” Scholz should ensure “that his Minister of Labor ends the multi-billion dollar subsidies for early retirement as soon as possible.” He was alluding to the deduction-free pension after an insurance period of 45 years.
The then coalition of Union and SPD introduced it in mid-2014. All those born before 1953 could retire without deductions at the age of 63; in the case of younger people, the start of the pension without deductions is postponed as the retirement age increases. When it was introduced, the government had forecast around 200,000 applicants for this deduction-free pension each year. With around 260,000 for several years in a row, there were sometimes significantly more.
“Those who retire sooner will receive less pension”
The FDP would prefer to completely eliminate the official retirement age. “I’m convinced that no one has to tell people anymore when they have to retire – also because the CVs are becoming more and more different,” said FDP Vice President Johannes Vogel of the German Press Agency. According to Vogel, Germany should orientate itself towards Sweden. Here the citizens can decide on their pension within a corridor. Vogel explained: “Those who retire earlier will receive a lower pension, those who retire later will receive more.”
Merz said the Union was surprised by Scholz’s statement. “The earlier options for entering retirement were the pet project of the SPD in the last election period. That is the handwriting of the SPD.” However, I welcome the fact that the chancellor “recognized the problem that the number of early retirements has thus become much higher than assumed at the time”.
CSU regional group leader Alexander Dobrindt said that Scholz had every opportunity to correct his course and to end his retirement early at the age of 63. The traffic light was responsible for formulating incentives with which a later retirement age would be reached.
Green parliamentary group leader Britta Haßelmann reminded that according to the coalition agreement, the current retirement age should remain. However, more prevention and health protection are possible. SPD faction leader Rolf Mützenich also referred to the traffic light coalition agreement. Mützenich announced corresponding steps in the remaining three years of the electoral period. Workers should be given more support if they want to work longer.
Employers are also seen as having an obligation
The SPD parliamentary group leader said there were good reasons for people whose work had “really got on their bones” and who wanted to make use of their pension earlier. Mützenich also sees an obligation for employers: if one or the other is to be persuaded to refrain from taking early retirement, there should be an “overall vote” by all those involved. Hans-Jürgen Urban from the IG Metall board spoke out in favor of “better working conditions in companies and flexible transitions to retirement”.
According to the current legal situation, the regular age limit will be gradually raised from 65 to 67 by 2029. But many retire earlier or even work longer. According to the Federal Statistical Office, the labor force participation of 60 to 64-year-olds has increased more than in any other age group in recent years – from 44 percent in 2011 to 61 percent in 2021. The 65- to 69-year-olds worked 10 percent in 2011 – and recently too 17 percent.