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Eastern Germany's pension crisis deepens as Saxony-Anhalt slams reform plans

A regional revolt over pensions exposes Germany's divide. Without change, millions in the east face a bleak retirement—relying only on shrinking state support.

The image shows an old newspaper advertisement for the pension inn in Dresden, Germany, with black...
The image shows an old newspaper advertisement for the pension inn in Dresden, Germany, with black text on a white background.

Eastern Germany's pension crisis deepens as Saxony-Anhalt slams reform plans

Saxony-Anhalt's Minister-President Sven Schulze (CDU) has sharply criticized Chancellor Friedrich Merz's statements on pension reform. "In eastern Germany, the state pension is not just a basic safety net—it is often the only foundation for a life in dignity in old age," he told Stern magazine.

A decent pension is "vitally important" for people and for "social cohesion" in the country, the minister-president stressed. His demand was clear: "I expect the Pensions Commission not only to acknowledge the special situation in Saxony-Anhalt and eastern Germany but to take it fully into account in its proposals."

The challenges go beyond the fact that far fewer people in the eastern states receive occupational pensions, he noted. "They also lacked the money to contribute to private retirement plans." On top of that, there is less wealth, property, or inheritance to shield people from poverty in old age.

Schulze also pointed to his state's demographic realities. "We're talking about an especially large population group in Saxony-Anhalt," he said. "The average age here is around 48—about 3.5 years higher than the national average."

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