Germany overhauls pensions with new taxes on high earners and civil servants
Germany’s pension system is facing major reforms as political parties push for long-overdue changes. High earners will now pay more into the system, covering income from stocks, rentals, and interest. Meanwhile, the coalition government is working to include civil servants and wealthy earners in the pension fund for the first time.
The current system has remained stable, with contributions steady and civil servants now contributing. Federal subsidies for pensions stay high but have helped reduce poverty among the elderly. Yet contradictions in the system persist, and the Pensions Commission has been asked to find solutions—though no clear plan or deadline exists.
The reforms aim to make the pension system fairer by expanding contributions from high earners and civil servants. While progress has been made, the lack of a concrete timeline leaves uncertainty. The success of these changes will depend on political will and cooperation across parties.
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