FDP plans to abolish pensions at 63

FDP plans to abolish pensions at 63

The FDP recently presented a twelve-point plan that is sparking discussions in the traffic light coalition about abolishing the “pension at 63”. This plan, which was presented in Berlin on April 21st, includes the possibility of immediately reducing 30 percent of the citizens' benefit payments for those who refuse to pay benefits, which previously could only be implemented gradually. Other elements of the plan include tax incentives for overtime and cutting bureaucracy, particularly in construction.

The FDP aims to eliminate the “pension at 63” and increase incentives for older workers. They argue that the zero-deduction pension for those who have been insured for a long time takes important skilled workers away from the labor market. Their goal is also to cancel the employer's contribution to unemployment insurance after the standard working limit has been reached.

There are two variants of the “pension at 63”: the old-age pension for those who have been insured for a long time and for those who have been insured for a particularly long time. The pension for those who have been insured for a particularly long time can be claimed by people who have paid contributions for 45 years. Despite the colloquial term “pension at 63”, the entry age is gradually increasing to 65 years. People who receive a pension without deductions after 45 years of contributions often work in physically demanding jobs.

Critics of the FDP's pension plans emphasize that cuts to the welfare state could increase social inequality. Michaela Engelmeier from the social association SoVD criticized the FDP for its attacks on the welfare state and emphasized the importance of politics for everyone. The discussion about eliminating “retirement at 63” raises questions about whether this could lead to more people working at retirement age or, conversely, whether it could lead to poverty in old age.