CDU is planning changes: pensioners should work more in the future!

CDU is planning changes: pensioners should work more in the future!

There is currently a discussion in Germany about the future workforce of pensioners. CDU General Secretary Carsten Linnemann recently criticized pensioners for their inadequate work performance. He calls for more commitment, especially to ensure the country's economic stability. In this context, Chancellor Friedrich Merz also advocates for increased work performance on the part of the German population. Linnemann believes that tens of thousands of pensioners would accept an upcoming new regulation for tax-free additional income of 2,000 euros per month from January 1, 2026 in order to improve their financial situation.

Economist Moritz Schularick highlights that workers over 60 years of age in Germany work 10-20% less than in Scandinavian countries. These differences are particularly evident when looking at pension arrangements in Denmark, where the retirement age has been raised to 70 for people born from 1970 onwards. The current debate about pensioners and their willingness to work is being followed critically by unions such as IG Metall. Its chairwoman, Christiane Benner, points out that many seniors are unable to work anymore due to physical and psychological stress.

Incentives for pensioners and companies

To address the looming skills shortage, various government departments have taken measures to promote the employment of older workers. The traffic light coalition is planning financial incentives for pensioners who voluntarily want to work longer. This initiative is supported by a “formulation aid for pension policy measures” that was approved by the Federal Cabinet on September 4th.

Federal Labor Minister Hubertus Heil emphasizes the need to secure experienced skilled workers and emphasizes that around 1.5 million seniors currently have a part-time job, a quarter of whom have social insurance, while three quarters work in mini-jobs. The planned relief includes, among other things, an exception to the pre-employment ban, which allows pensioners to return to their old employer for a limited period of up to eight years. However, the German Federation of Trade Unions criticizes these regulations and instead calls for permanent employment for older employees.

Further measures and financial incentives

A new basic amount is also being planned for widows and widowers, which will allow earned income of up to 538 euros per month to be excluded from the income calculation towards the survivor's pension. In addition, employer contributions to unemployment and pension insurance for employees over the age limit are to be abolished. Instead, a payment of up to 10.6% of gross wages is planned for senior employees, which can lead to a net profit of 250-400 euros per month.

The introduction of a pension deferral bonus is planned for future pensioners from 2028. This would enable a one-off payment instead of monthly supplements when postponing retirement. Anyone who works for at least another year could secure a tax-free bonus of around 22,000 euros if they have collected enough earnings points. However, experts warn of the possible consequences for the income of health and nursing care insurance companies.

The first readings on the 2025 budget and a growth initiative will take place in the Bundestag in mid-September, while a decision is imminent in November. However, the planned changes will only be implemented with the approval of the Federal Council.

The debate about the willingness of pensioners to work and the appropriate framework conditions is continuing at full speed, as the baby boomer generation will soon be retiring and the shortage of skilled workers could become even worse.

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