Germany's pension and healthcare reforms spark fierce backlash

Ahead of Wednesday's cabinet meeting and amid debates over pension and healthcare reforms, the German Social Association (VdK) has sharply criticized potential plans by the conservative Union parties to reduce the state pension to a mere basic income safety net.

In an interview with newspapers of the Funke Media Group (Sunday editions), VdK President Verena Bentele warned: "Reducing the statutory pension to just a basic provision would massively devalue it. Key components—such as survivors' benefits and protection in cases of reduced earning capacity—would be put at risk."

Bentele called Chancellor Friedrich Merz's (CDU) renewed proposal—made earlier this week at a banking association event—"cynical and out of touch," given that "38 percent of employees already cannot afford additional private retirement savings." She accused Merz of ignoring the fact that many people simply cannot afford private provisions.

"Such a move would significantly increase the risk of old-age poverty, particularly for low- and middle-income earners, as well as for those with long periods of unpaid care work or unemployment," Bentele said. The statutory pension must remain the cornerstone of retirement security, she stressed, with private savings serving only as a supplement—not a replacement.

At the banking association's annual reception on Monday, Merz had reiterated that the statutory pension system would, at best, only provide a basic income in the future—a position backed by members of his party.

Ahead of the cabinet meeting, Bentele also criticized several aspects of the planned healthcare reforms. "We reject the abolition of free co-insurance for dependents," she told Funke Media Group newspapers. "It embodies lived solidarity and is a core pillar of our welfare state."

She argued that the financial struggles of the statutory health insurance system (GKV) must be addressed through collective solutions. "The VdK is calling for higher earners to contribute more fairly," Bentele said. "Aligning the GKV contribution assessment ceiling with the pension insurance threshold would send a strong signal. Those who earn more should contribute more to the solidarity-based system."

Regarding unpaid healthcare costs for citizens receiving basic welfare benefits (Bürgergeld), Bentele demanded that the federal government finally reimburse the funds, suggesting that a fairer tax policy could cover the necessary expenses.

She also condemned Health Minister Nina Warken's (CDU) plans to cut sick pay, warning that such measures would "disproportionately burden people with chronic illnesses and low incomes." The VdK categorically opposes the proposal, Bentele said. "If the goal is to reduce sick pay costs, we need healthy workers. That means investing in preventive care and comprehensive early intervention."

The health ministry's draft bill, based on recommendations from an expert commission, is set to go before the cabinet on Wednesday, though several points remain contentious.