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The bone of contention early retirement: "Retiring at 63 was and is a serious mistake"

2023-06-05T14:52:06.088Z

Highlights: The retirement age is currently being raised to 67. But many older people in Germany are taking advantage of the opportunity to retire earlier without deductions. The Union and employers fear a shortage of skilled workers and are calling for an immediate end to the so-called "retirement at 63" Federal Labor Minister Hubertus Heil (SPD) immediately rejected the initiative from the CDU and accused the party of "ideological debates" Heil: "Pension cuts for people who started working early and paid in for a long time are anti-performance and unfair"



Retiring earlier – that's what many Germans want. But the Union and employers fear a shortage of skilled workers. © Imago

Retiring earlier – that's what many Germans want. But the Union and employers fear a shortage of skilled workers and are calling for an immediate end to the so-called "retirement at 63".

Berlin – The retirement age is currently being raised to 67 – but many older people in Germany are taking advantage of the opportunity to retire earlier without deductions. The so-called "pension at 63" was introduced by the then black-red federal government and is aimed at "particularly long-term insured" who have paid contributions for at least 45 years.

Those born before 1953 were able to retire at the age of 63 without any deductions. For younger people, the age limit increases, from those born in 1964 there is a deduction-free pension only from the age of 65. From this birth cohort, the standard age limit of 67 years will also apply.

"Retirement at 63": Criticism of Spahn's proposal

The model enjoys great popularity among those affected. More senior citizens than assumed at the time are making use of this option – which is driving up the costs for pension funds and further fuelling the shortage of skilled workers. Union parliamentary group deputy Jens Spahn (CDU) had recently called for an end to the "pension at 63". Two million skilled workers who had retired earlier were now "bitterly lacking," he told Bild am Sonntag.

Federal Labor Minister Hubertus Heil (SPD) immediately rejected the initiative from the CDU and accused the party of "ideological debates." "The statements from the CDU on pensions miss the reality of life for many hard-working people," Heil told the Tagesspiegel. "Pension cuts for people who started working early and paid in for a long time are anti-performance and unfair."

The head of the German Trade Union Confederation (DGB), Yasmin Fahimi, sees it similarly – she criticized Spahn's proposal in the Rheinische Post: "Anyone who wants to let those who are already at the limit continue to work is very far removed from the real working world of many."

Head of Gesamtmetall: "Retiring at 63 was and is a serious mistake

But Spahn is now also receiving encouragement from employers: "The pension at 63 was and is a serious mistake and a great injustice that future generations will have to pay," said Stefan Wolf, head of the association of Gesamtmetall – the general association of employers' associations of the metal and electrical industry – the Bild newspaper. The demand to abolish them is absolutely right, Wolf said. In the newspaper, he appeals to the Minister of Labour: "Mr. Heil should jump over his shadow."

At the end of the year, the president of the employers' association, Rainer Dulger, had also called for a move away from the pension from the age of 63 in its current form. "Retiring at 63 has led to a brain drain," Dulger said at the time. Many highly qualified workers are no longer available because of the retirement age of 63 – which has weakened the companies.

With material from dpa

Source: merkur

All news articles on 2023-06-05

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