The issue of pensions is at the heart of the election campaign. The Greens plan to include parliamentarians and civil servants in the statutory pension.
Berlin – The political parties are gradually presenting their election programs for the federal election on February 23, 2025 and the election campaign is gaining momentum. A central issue is pension policy, which urgently needs reform. The CDU opened the event by proposing a reform of private pension provision and the abolition of mandatory tax returns for pensioners. She also reiterated her desire to hold onto her pension at 63. The SPD made it clear at the weekend that a coalition would only be possible if pension levels were stabilized. Now the Greens are presenting their own vision for pension policy.
Pension like in Austria: Greens want to bring civil servants into the pension fund
The Greens agree with the Social Democrats in their draft election program and are calling for pension levels to be stabilized at 48 percent of average working income. You support retirement at 67, but want to offer older people more incentives to work beyond the standard retirement age.
In addition, the Greens are striving for a reform of partial retirement and are in favor of including MPs “and, in the future, civil servants” in the statutory pension. You also do not want to include self-employed people who are otherwise insured in the pension insurance “under fair conditions”. The party describes this concept as a “first step on the way to citizens’ insurance”.
The fact that there is a separate system for civil servants is met with incomprehension by many citizens. The statutory pension is significantly below the level of state pensions that retired civil servants receive. The old age security report for 2023 publishes the latest figures. On average, 1,093 euros were paid out in statutory net pensions last year. In contrast, there are pensions for public servants such as judges, civil servants and soldiers, which range between around 2,500 and 3,500 euros.
The statutory pension is lower than the pensions: Is Austria a role model?
However, it should be noted that the statutory pension is only one of three pillars of retirement provision. People should also protect themselves through company and private pension schemes. It is obvious that this does not always work: According to the Federal Statistical Office, around 17 percent of people over 65 in Germany are at risk of poverty. The pension system for civil servants serves as both a legal and operational pillar, which is one justification for its level.
However, whether justified or not, the two-tier system for pensions is perceived by the population as unfair. Social associations and left-wing parties have therefore been campaigning for years to convert the system into a citizens' insurance system into which all employed people pay. This corresponds to the Austrian model, which was reformed about 20 years ago. According to the German Pension Insurance, rents in Austria are higher, around 500 euros more per month. In addition, pensioners in Austria receive 14 pensions per year compared to 12 in Germany.
Pension and pension in comparison: System like in Austria would bring justice
In Austria, the contribution rate is also higher than in Germany at 22.8 percent. However, this is not paid equally; instead, the employer pays 12.55 percent more than the employee. There is also a longer waiting period: in Austria you have to pay in for 15 years before you are entitled to a pension; in Germany it has only been five years.
Would citizen insurance help the pension fund become more financially stable? Economists agree: No, the pension fund's finances would hardly improve as a result. As pension expert Axel Börsch-Supan explained in Munich, civil servants are expensive because they live long on average and there are many of them. So you wouldn't relieve the burden on the pension fund, but rather put even more strain on it. Nevertheless, he also supports this reform. “That would finally bring justice,” said the economist.
The Greens want to achieve this “justice” with their reform, as their election program shows. They also plan to curb health insurance contributions, which are expected to rise significantly again in 2025 – by making privately insured people more heavily involved in the costs of health care. For example, private health insurance companies should also be involved in the hospital reform decided by Federal Health Minister Karl Lauterbach (SPD).
