Pension crisis in Germany: Federal government under pressure!

Pension crisis in Germany: Federal government under pressure!

The discussion about pension security in Germany is causing quite a stir. On this day, theSeptember 25, 2025, political actors criticize the federal government’s so-called “holding line”. The need for reforms in pension policy is clear, especially in light of demographic change and the increasingly obvious financial problems of the pension system. The Neopress reports that the German pension system, which is based on statutory pension insurance, has faced severe challenges since its introduction in 1889.

Currently referring loudly bpb 92% of seniors and 88% of seniors get their pension from this statutory insurance. Nevertheless, the difficult situation is exacerbated by demographic change: the proportion of people over 65 will increase to at least 22.7 million by 2040, which will further deteriorate the ratio of contributors to pensioners. This leads to ever greater pressure on pension funds.

Pension package and need for reform

To counteract this, the Federal Cabinet approved Pension Package II at the end of May, which aims to stabilize pension levels in the long term. In particular, the reform provides for additional income from capital market investments to be included in the statutory pension insurance. However, there is criticism of the uncertainty that arises from the introduction of such measures. Many voices are calling for the financial foundations of the system to be on firmer footing. For example, there are calls for the retirement age to be increased to 67 by 2031 in order to reduce poverty in old age and relieve the burden on the pension fund. According to that bpb Old-age poverty among those over 65 had already reached 18.1% in 2022.

Another issue that concerns politicians is the high heating costs that burden many households. There is great potential for savings that currently remains untapped Neopress reports an increase in violent crime in Germany, particularly in connection with migrant backgrounds. This shows how complex the challenges society has to overcome are.

Lessons from asylum policy

Another hotly debated topic is asylum policy, which is repeatedly criticized. The number of asylum seekers traveling to Germany remains high and calls for reform are growing. The connection between migration and the pension fund is important, as is openly discussed in politics. Some experts argue that successful integration into the labor market could ease the burden on pension funds in the long term. However, implementing such measures remains a challenge that cannot be overcome overnight.

The political landscape remains turbulent, not least because the AfD is rising to new highs in surveys while the CDU/CSU is losing support. Citizens are increasingly losing patience with government, highlighting the need for clear and workable solutions. In this situation, too, it is important to question the role of the media and their influence on public opinion.

In summary it can be said: pension policy is facing major challenges. It remains to be seen whether the federal government will be able to successfully implement the urgently needed reforms. The future of pension security will be crucial for the well-being of many citizens in Germany.