Concerned mother examining pension documents amid symbols of rising costs for expanded mothers' pension benefits.
Concerned mother examining pension documents amid symbols of rising costs for expanded mothers' pension benefits.
Àwòrán tí AI ṣe

Mothers' pension to cost 18.5 billion euros annually from 2027

Àwòrán tí AI ṣe

The mothers' pension has cost around 119 billion euros since its introduction in 2014 and currently burdens the pension insurance with 13.5 billion euros per year. From 2027, an expansion by another six months will raise costs to 18.5 billion euros, funded by tax revenues. The measure equalizes child-rearing periods for mothers before and after 1992 but faces criticism due to pressure on the pension system.

The mothers' pension was introduced in 2014 to better recognize the child-rearing contributions of older women who gave birth before 1992. Previously, only one year of child-rearing credit was applied for these children, compared to three years for those born after 1992. Since then, the regulation has cost around 119 billion euros, according to figures from the German Pension Insurance provided to the RedaktionsNetzwerk Deutschland (RND).

In 2014 (Mütterrente I), the crediting period increased to two years, with annual costs of about seven billion euros. In 2019 (Mütterrente II), it rose to two and a half years, driving expenses above 12 billion euros. The recently approved Mütterrente III in December 2023 by the Bundestag expands it to three years from 2027, achieving full equalization. Implementation begins in 2027, with retroactive payments from 2028, increasing pensions by about 20 euros per child per month.

The additional five billion euros annually will come from tax revenues, raising total costs to 18.5 billion euros. The CSU pushed this through as an election promise and anchored it in the black-red coalition agreement. Criticism arises from younger politicians and experts, who point to financial pressures from an aging society. The CDU Wirtschaftsrat recently called for its abolition. The Greens plan a constitutional complaint against the 2025 budget, labeling the expansion an 'election gift'.

Ohun tí àwọn ènìyàn ń sọ

Reactions on X to the mothers' pension costs, totaling 119 billion euros since 2014 and projected to reach 18.5 billion annually from 2027, include defenses portraying it as deserved support for mothers superior to other expenditures like migration aid, criticisms from Greens labeling the funding unconstitutional diversion from infrastructure, and calls from CDU youth for cuts to alleviate pension system pressures. Sentiments mix support, opposition, and fiscal skepticism among users and news outlets.

Awọn iroyin ti o ni ibatan

Government officials planning a 2028 pension package with economic warnings
Àwòrán tí AI ṣe

Government plans capital pension launch from 2028

Ti AI ṣe iroyin Àwòrán tí AI ṣe

The federal government wants to pass a pension package by the end of the year. The capital-funded supplementary pension is set to start from 2028. A new study warns of economic damage.

The pension commission plans to hand over 30 reform proposals on Tuesday to Chancellor Friedrich Merz and Labor Minister Bärbel Bas.

Ti AI ṣe iroyin

The black-red coalition is considering raising the contribution surcharge for childless people in long-term care insurance by 0.1 percentage points to 0.7 percent. Health Minister Nina Warken (CDU) is pushing the idea.

Germany currently spends 751 billion euros on social benefits. Spending is rising particularly for unemployment benefit I, care allowances and social assistance.

Ti AI ṣe iroyin

The German government has approved the Altersvorsorgedepot as the new framework for state-supported retirement savings. From January 2027 self-employed people and civil servants will also be eligible. The Riester pension scheme ends at the close of this year.

Ojú-ìwé yìí nlo kuki

A nlo kuki fun itupalẹ lati mu ilọsiwaju wa. Ka ìlànà àṣírí wa fun alaye siwaju sii.
Kọ