Germany's coalition government plans to establish a €200 billion investment fund to support state pensions.

The fund will be financed through federal government loans and the sale of state holdings.

The objective is to maintain pension payments at 48% of income until 2030 and relieve fiscal pressure on workers and the budget.

Legislation aims to increase pension amounts annually, incurring extra costs averaging €10 billion per year by 2035.

The proposal sidesteps the 'sustainability factor' created two decades ago, leading to debate and criticism.

Chancellor Olaf Scholz backs the pension financing plans, seeking parliamentary approval before the summer recess.