Left fears old-age poverty from German pension plans; SPD has questions

The Left party in Saxony is sounding the alarm over the federal government's pension reform plans, warning of a significant increase in poverty among the elderly. Citing recommendations from a pension commission, which Chancellor Friedrich Merz (CDU) reportedly intends to fully implement, the party argues that the proposed changes primarily amount to pension cuts.

“

The statistics on life expectancy say nothing about people's working lives. Many can already not work until the standard retirement age today – their retirement benefits will therefore be cut if retirement is pushed back further.

"The statistics on life expectancy say nothing about people's working lives," stated Susanne Schaper, the Left party's faction leader in the Saxon state parliament. "Many can no longer work until the standard retirement age today – their retirement benefits will therefore be cut if retirement is pushed back further."

Schaper highlighted that even 45 years of contributions might soon be insufficient for retirement. She criticized the government for not doing enough to bring more people into the pension system, despite plans to include politicians, corporate executives, and the self-employed. "The statutory pension can and must be a safe haven for everyone. But the number of those it does not adequately secure in old age is growing, seemingly unstoppably, even in Saxony," she asserted. The party pointed to the growing number of elderly individuals struggling financially, for whom even small expenses like a cafe visit or gifts for grandchildren become a challenge.

“

What happens if the capital stock doesn't look good? Does it then lead to a reduction in the pension? That is one of the questions.

Social Minister Petra Köpping (SPD) acknowledged positive aspects of the reform but also raised concerns. "What happens if the capital stock doesn't look good? Does it then lead to a reduction in the pension? That is one of the questions," Köpping said after a cabinet meeting in Dresden. She also questioned the reform's impact on the eastern German states, emphasizing the need for broad discussion within the SPD. Current figures show that in Saxony, 21,080 people received basic old-age security benefits in late 2025, averaging 616 euros per month. This number has nearly doubled in ten years, underscoring the Left party's concerns about the adequacy of future pensions, especially in eastern Germany where supplementary private pensions are less common.

“

The statutory pension can and must be a safe haven for everyone. But the number of those it does not adequately secure in old age is growing, seemingly unstoppably, even in Saxony.