FDP twelve-point plan: abolish pensions at 63?

FDP twelve-point plan: abolish pensions at 63?

The FDP recently presented a twelve-point plan that calls for the abolition of the “pension at 63”. This measure has sparked discussions in the traffic light coalition. As part of this plan, it could be possible to immediately reduce 30 percent of the benefits of citizens' benefit recipients. Previously, such a reduction was only possible in stages. Additionally, the plan includes tax incentives for overtime and cutting bureaucracy in various sectors, including construction.

The “Pension at 63” aims to motivate older employees to continue working by eliminating a tax-free pension for those who have been insured for a long time. The Liberals argue that this regulation deprives the labor market of skilled workers. People who have 45 years of contributions and have reached the age of 63 could benefit from the pension. However, the minimum age for claiming the pension is gradually increasing and is currently 65 years.

The new regulation would lead to various possible scenarios: Some of the 250,000 people who would normally take advantage of the “pension at 63” could continue to work, while others would have to accept reductions and therefore have to make do with a lower pension. However, it remains unclear whether abolition would actually lead to higher employment rates or whether more people would fall into poverty in old age as a result of lower pensions. The abolition of the “pension at 63” brings with it various challenges and uncertainties.