Pension reform: The dangerous curve for Friedrich Merz

The coalition is fighting over the amount of pension funds. What does the proposal actually mean – for retirees and young contributors? Our graphic explains it.

November 18, 2025, 10:23

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Article summary

Germany is aging, pension rates are falling, and the government is facing an important debate over the future of pensions. Young members of the CDU and CSU are calling for a return to lower pension rates from 2032, which would have major financial consequences. A draft law to stabilize pension levels by 2031 is causing political strife and could endanger the governing coalition. The pension formula that determines the amount is still controversial because it has a direct impact on the amount of the pension. However, the long-term stability of pension funding remains unresolved, and the pension commission is expected to develop further measures.

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Germany is getting older. Year after year, there are fewer and fewer contributions to pay for more and more retirees. Therefore, the less money remains for each retiree: Those retirement level sink.

To prevent this, the federal government previously had one The line stops decided to keep the pension rate constant. The Black and Red want to continue this rule through 2031. After 45 years of contributions, the average retiree will continue to receive 48 percent of the average salary. This is stated in the coalition agreement.