The German government's proposed Pension Package II aims to stabilize the pension system by 2039. Key components include maintaining the pension level at 48% of the average income and introducing a generational fund with a capital stock of 200 billion euros by 2035. This fund, called Generationenkapital, would rely on stock market investments to support future pension payouts, with the first distributions planned for 2040. The package also anticipates an increase in the contribution rate to 22.7% by 2045. The costs for building up the generational fund will not count towards the national debt brake.
However, the reform faces significant criticism. Critics argue that the plan imposes a heavy financial burden on younger generations and raises concerns about the feasibility of consistently high returns from stock market investments.
The Ifo Institute and the Federal Audit Office have voiced their opposition, while the FDP and the Union demand substantial revisions. Despite this, the SPD and Chancellor Scholz insist on the reform's necessity, tying its passage to the survival of the coalition government.
Social associations and leftist parties argue that the measures fail to adequately address elderly poverty. The Greens support the package but call for sustainable investment criteria for the generational fund.
Economic leaders also criticize the plan, labeling it as short-sighted given the demographic challenges. The heated debates highlight the complex balance between securing financial stability for current pensioners and ensuring fairness for future generations.
