New government, new opportunities: This is how our pension system is changing!

The new federal government has initiated important plans for social security and private provision. How extraETF reports, the CDU/CSU emphasizes the relevance of a strong economy for prosperity. However, concrete reform plans for the state pension have not yet been presented in detail. Nevertheless, the Union is expected to take measures to stabilize the pension system, possibly through incentives for private pension provision.

Another central project is the introduction of a share portfolio for children, with funding of 10 euros per month for children between 6 and 18 years old. The costs of state funding amount to around 7 million euros per month per year. The aim is to make future generations more familiar with the capital market and to benefit from compound interest effects. In addition, the importance of private pension provision could increase, which could require a review and adjustment of existing pension plans.

Different approaches to tax policy

The new coalition shows different approaches to tax policy. While the Union is seeking relief for heirs to their own homes, the SPD rejects this proposal and advocates higher taxation of large inheritances. The uncertainty about a possible compromise in tax policy remains.

In the election programs of the parties, such as tagesschau.de reported that the issues of pensions and citizens' benefits are becoming central social policy concerns. The SPD plans to retain citizens' money as a tax-financed basic security and to secure the pension level of at least 48% without cutting pensions or raising the retirement age. In contrast, the CDU/CSU aims to abolish citizens' money and wants to introduce a “new basic security”.