Debate: Spahn: “Retirement at 63 costs prosperity”

In view of the shortage of skilled workers in Germany, the Union is making a new push for an end to the full pension at least 63 years for long-term insured. Group deputy Jens Spahn (CDU) told the “Bild am Sonntag”: “Retirement at 63 costs prosperity, burdens future generations and sets the wrong incentives. It should be abolished immediately and replaced by a better disability pension.”

Two million skilled workers who had retired earlier are now “bitterly” missing. The demand was immediately met with opposition from the SPD, the Greens and the Left.

SPD faction deputy Dagmar Schmidt told the newspaper: “We decided to retire at 63 together with the CDU/CSU because that takes into account the hard work of many people who simply can no longer work. Whoever puts the ax to it achieves nothing other than a pension cut for precisely those top performers.” Green expert Frank Bsirske warned that many professional groups, such as employees in care and in daycare centers, simply could not work until the age of 67. “For these people, an end to retirement at 63 would have fatal consequences.”

Age limit increases gradually

The regulation was introduced in 2014 by the then black-red federal government and is aimed at “particularly long-term insured persons” who have paid contributions for at least 45 years. Those born before 1953 could retire at 63 with no deductions. For young people born before 1963, this age limit increases gradually. From the birth cohort of 1964 onwards, it is again 65 years, as stated in general information from the German pension insurance.

When it was introduced, the government had forecast around 200,000 applicants per year for this pension without deductions. But then there were tens of thousands more each year, for example 268,957 in 2021. There are already around two million in total. The Federal Institute for Population Research announced at the end of 2022 that people are more likely to retire early. According to this, many retire at the age of 63 or 64 – well before the standard retirement age. According to the institute, in 2021 almost every third person would access the old-age pension via the pension at 63. In addition, people retire before the standard retirement age more often and accept deductions in the amount of the pension.

Wissler criticizes Spahn: “A disrespect”

Linke boss Janine Wissler criticized Spahn’s demand as “disrespect for life achievements of hard-working people and a pension cut through the back door”. You cannot fight the shortage of skilled workers by increasing the retirement age. “That makes many jobs less attractive.” Good working conditions, the strengthening of collective agreements, more training and apprenticeships are necessary. Wissler said: “For Jens Spahn and the CDU, pensions are apparently alms that can be reduced at will.” In construction or in care, many do not reach this age limit and have to retire earlier with deductions because their bodies are no longer able to cope.

The managing director of the employer-financed “Initiative Neue Soziale Marktwirtschaft”, Thorsten Alsleben, told the “Bild am Sonntag”: “The pension at 63 no longer fits into the time and must expire by the end of 2030 at the latest.” It costs the contributors billions and also exacerbates the shortage of skilled workers.

FDP Vice Johannes Vogel spoke out in favor of a “self-determined, flexible retirement age”. Everyone should be able to decide for themselves when to retire. “If you work longer, you get a bigger pension.” CDU leader Friedrich Merz told the “Süddeutsche Zeitung” (Saturday) that one could probably not avoid working more with an ever longer life expectancy. “Otherwise, our pension system will no longer be financially viable.”