The CDU's plans will impact Germans in the near future. The CDU commission has completed the first draft of the party's new political program. The 70-page document is titled "Life in Freedom. Safely Leading Germany into the Future." The final project is expected to be adopted at the federal party conference from May 6 to May 8, 2024, in Berlin.
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The previous basic program was adopted in 2007. The new proposal particularly affects retirees, as the CDU wants to adjust the retirement age to ensure that pensions remain sustainable in the future.
How the CDU's plans will affect Germans
CDU plans to introduce the so-called "active pension". Anyone who reaches the legally defined retirement age and wishes to continue working can do so without paying taxes up to a certain limit.
The exact limit remains unclear at this point.
From the experts' perspective, providing incentives for retirees to continue working makes sense. Currently, there are about 1.8 contributors for every retiree.
According to the forecast by the German Economic Institute (IW), by 2030, there will be only 1.5 contributors for each retiree, and by 2050, it might even decrease to 1.3.
Now, the CDU wants to take countermeasures in line with its plans. The effectiveness of these measures will only be evident over time.
Another measure to strengthen pensions is the increase in the retirement age, meaning that employees will have to work longer. The CDU wants to link the entry age into the system with the expected life expectancy. There should also be a "mandatory funded pension system".
- Employees should contribute to private pension insurance;
- While low-income individuals should receive support through state subsidies.
The exact amount is not specified in the basic program. However, millions of people will benefit from these plans initially presented by the FDP.
The CDU also aims to raise the income threshold above which the maximum tax rate applies (42 percent as of 2023).
Plans regarding youth and families were also outlined:
If children have difficulty speaking German, they should attend language courses in preschool institutions. This is outlined in the CDU's basic program. At the same time, four-year-old children must undergo a mandatory language test before entering school.
After completing their education, young people must also undergo a mandatory year of community service. They can choose whether they want to serve in the armed forces or contribute to the common good. The CDU aims to reintroduce military and community service, which was abolished in 2011.
In addition, the child benefit (up to €1200 per child per year) will be permanently introduced.
These are the changes that await Germans in the future if the project is accepted.
Related topics:
The "active pension" proposed by the CDU could allow retirees to continue working without paying taxes up to a certain limit, potentially impacting the retirement plans of many Germans.
In alignment with the CDU's plans, the retirement age in Germany may be adjusted to ensure pension sustainability for future generations.
