Are active pensions at risk of becoming fraudulent schemes?
In a twist of events, the CDU's new pension plans have stirred up quite the commotion!
CDU's parliamentary business manager, Hendrik Hoppenstedt (52), stirred confusion when he announced on "Phoenix" TV that pensioners could potentially earn up to 2000 euros tax-free in the future, only if they waived their pension for that period.
This statement caused quite the uproar within the Union, especially with internal chat groups wondering, "Is the 2000 euros/month tax-free, supposed to be in addition to, or replacing, the pension?" Hoppenstedt's statement contrasted the actual law, set to come into effect in 2026, which states that pensioners who voluntarily continue to work can earn tax-free income up to 2000 euros per month, on top of their pension.
CDU general secretary, Carsten Linnemann (47), promptly reined in Hoppenstedt, clarifying to B.Z., "Those who voluntarily continue to work in retirement can earn up to 2000 euros tax-free, in addition to their pension."
In the face of contradictory statements, Hoppenstedt apologized stating, "I simply made a mistake in the heat of the verbal battle."
Meanwhile, the responsible finance ministry of Lars Klingbeil couldn't provide a clear answer about what pensioners can expect in the future, making matters even more uncertain. The coalition agreement does clarify that those reaching the statutory retirement age and choosing to work, will receive their salary tax-free up to 2000 euros per month.
In the midst of this chaos, the SPD is making the most of the situation. Wiebke Esdar (41), deputy chairwoman of the SPD parliamentary group, gleefully pointed out, "The active pension, of course, is in addition to the pension. People will reach their retirement age and regularly receive their hard-earned pension and then voluntarily continue to work and earn up to 2000 euros tax-free per month." Esdar's stern warning to the CDU, "That's what we agreed with the Union in the coalition agreement, and we firmly agreed upon it."
Economist Prof. Veronika Grimm (53) questions the sustainability of the pension system with the addition of a tax-free income, proposing a raise in the retirement age could be a better solution for the system's sustainability.
The CDU's "active pension" model, part of a broader set of policy initiatives, aims to address Germany's demographic challenges and enforce the sustainability of its pension system. By offering flexible work options, the policy encourages older individuals, especially those with caregiving responsibilities, to remain engaged in the labor market. The CDU emphasizes productivity and self-reliance, advocating for a cultural shift towards longer working lives and greater personal responsibility for retirement planning. Financially secure pensioners can supplement their income, and the labor market can offset some of the effects of Germany’s aging population and shrinking workforce. The shift reflects a move away from traditional, rigid retirement models towards more flexible, individualized approaches.
The CDU's business manager, Hendrik Hoppenstedt, initially caused confusion within the Union about the tax-free earnings for pensioners, proposing they could forgo their pension for potential earnings of up to 2000 euros per month. Contradicting this, the CDU's general secretary, Carsten Linnemann, clarified that pensioners can earn up to 2000 euros tax-free per month in addition to their pension. This dispute, coupled with unclear answers from the finance ministry and the SPD's exploitation of the situation, has raised questions about the sustainability of the pension system, as proposed by economist Prof. Veronika Grimm, who suggests a potential rise in the retirement age as a feasible solution.
