Monika Schnitzer, head of the German Council of Economic Experts, advocates for raising the retirement age and abolishing the early retirement scheme known as 'Rente mit 63', arguing that two-thirds of increased life expectancy should be spent working.

The growing number of pensioners in Germany, coupled with a declining workforce, highlights the urgent need for pension reform to ensure the system's sustainability.

Critics, including CDU officials, argue that 'Rente mit 63' burdens future generations and misguides retirement incentives, calling for its immediate abolishment.

Schnitzer argues that the current pension system favors individuals who may not reach the required 45 contribution years, such as roofers and nurses, disadvantaging those in physically demanding jobs.

While Schnitzer dismisses the idea of a billionaire tax proposed by Green Party leader Robert Habeck as inefficient, she supports increasing the inheritance tax to ensure fairness.

She emphasizes the need for a systematic increase in the retirement age, suggesting that the current early retirement policy is financially unsustainable and disproportionately benefits those in less demanding jobs.

Schnitzer warns that the SPD's plans to stabilize pensions could lead to unsustainable contribution rates, projecting an increase from 18.6% today to over 21% by 2035 and exceeding 26% by 2060.

She believes that all heirs should pay inheritance tax, arguing that current exemptions for business heirs limit their operational efficiency and create unfair advantages.

The collapse of the Ampel coalition in early November 2024 halted plans to stabilize the pension system, leaving significant challenges for the incoming government.

Germany is set to hold a federal election on February 23, 2025, where pension reform will be a critical issue for the new government.

To maintain the real value of pensions, Schnitzer proposes linking pension increases to inflation rather than allowing unchecked growth.

Schnitzer describes the CDU's proposals as 'timid' and warns that a new grand coalition would likely fail to implement necessary pension reforms.