Bundesjugendring welcomes the debate on pension policy

Bundesjugendring calls for sustainable financing concept in the Pensions Commission

However, young people are often only used as a buzzword in the pensions debate without their perspectives being recognised and taken into account. There is a danger that intergenerational conflicts are merely constructed and "intergenerational fairness" is used as a buzzword without taking a closer look at the complex issues involved and searching for resilient solutions. Instead of simplistically setting up opposites, a solution based on solidarity must be found within the framework of the pension reform, which enables a sustainable stabilisation of both the pension level and the contributions. Accordingly, the Bundesjugendring expects the Pension Commission to come up with bold proposals on pension financing. These should not be at the expense of employees and pensioners, but should place greater responsibility on those who can build up and expand large assets. This is the only way to create a future-proof pension system that is fair for all.

Intergenerational solidarity instead of contrived intergenerational conflicts

The current debate surrounding a new pension package is only focussing on individual aspects of regulations. At the same time, a pension commission is to draw up comprehensive proposals for reforming the pension system, including its financing, by 2027. However, the governing coalition has not yet stated how the associated promises are to be financed in future - especially for the period from 2032.

The current debate revolves primarily around the distribution of the additional costs among contributors. German pension insurance expects pension contributions to rise significantly by 1.2 percentage points from the current 18.6 per cent of gross wages to 19.8 per cent in 2028 and then to 20 per cent in 2029.

Increasing financial burdens on contributors are no longer affordable for many people, especially young people. However, this must not be misused as an argument against ensuring an adequate pension level for all. Rising costs cannot be financed by higher contributions from employees alone. Young people expect a solution that enables both an affordable pension contribution and a sufficient and stable pension in old age.

Distributive justice instead of supposed intergenerational conflicts

Contrary to what is often portrayed, the conflicts are not primarily between young and older people. Rather, they are caused by the unequal distribution of wealth and income. A solution must therefore be based above all on strengthening distributive justice. This is the only way to secure living standards and truly combat poverty in old age. Genuine intergenerational fairness requires solidarity-based financing of the statutory pension scheme.

In its position "Rethinking intergenerational justice - in favour of a policy of intergenerational solidarity", the German Federal Youth Council has explained how the fair inclusion of the generations can be achieved. Genuine intergenerational justice requires a spirit of solidarity that sees the generations not as opposites but as allies.

Financing a solidary and future-proof pension system is undoubtedly a challenge. Youth organisations and rings have concrete proposals in this regard and represent the interests of young people. In its 2023 position "Pensions are a youth issue - further developing statutory pension insurance in a spirit of solidarity", the German Federal Youth Council called for a general insurance scheme for all employees. A federal subsidy financed by taxes must also be used to finance this. This should also make those who can build up and expand large fortunes responsible: e.g. through higher taxation of capital income, companies and top incomes, a fairer inheritance tax and the introduction of a financial transaction tax.

The debate and the pension system therefore need fewer contrived conflicts between the generations, but rather more courage for structural and sustainable reforms that create real justice and establish shared responsibility for all. With this in mind, the Bundesjugendring expects the Pension Commission to recognise the perspectives of young people in a holistic financing concept for pension reform.