German Workers Divided Over Mandatory Employer Pensions as Reform Clock Ticks to July Summit
23.06.2026 - 12:14:27 | boerse-global.de
A fresh survey commissioned by the DEVK insurer has laid bare a sharp divide among German employees over whether company pensions should become compulsory. Conducted by Civey from 12 to 19 June 2026 among 2,500 participants, the poll found that 48% of workers favour a mandatory occupational pension scheme (bAV), while 39% oppose it and 13% remain undecided.
The numbers come as Chancellor Friedrich Merz and Labour Minister Barbara Bas prepare to present far-reaching recommendations from a pension commission. Their goal: a legal framework by year-end that ensures a combined replacement rate of 70% of the last net wage from statutory, company and private pensions.
At the heart of the proposal lies a capital-funded pension modelled on Sweden’s system. Employees and employers would each contribute up to one percentage point of gross pay — totalling a maximum of 2% of gross wages — with contributions starting in 2028. First meaningful payouts are not expected before 2040.
The commission also recommends linking the retirement age dynamically to rising life expectancy under a "2:1 model". That would push the effective retirement age to roughly 67.5 by 2041. Other suggested changes include scrapping the deduction-free pension after 45 contribution years and raising the early-retirement age from 63 to 64.
The poll data also highlights workers' varying capacity and willingness to save. Twenty-eight percent of respondents said they could contribute between €50 and €100 per month to an extra pension. A further 20% said they could afford up to €200. However, one in six rejected any additional voluntary provision outright.
The debate over mandatory bAV is not new. According to the IfD Allensbach institute, about 19.5 million of Germany's roughly 34.8 million socially insured employees had a right to a company pension in June 2025. That coverage rate — around 52% — has barely budged since the end of 2023, underscoring the stagnation the reform aims to address.
Employers and unions remain deeply divided. BDA president Rainer Dulger opposes a compulsory capital pension, arguing that more funded provision is sensible but should not be imposed by the state. He warns that mandatory contributions could saddle companies with extra costs exceeding €40 billion annually.
The DGB has thrown its weight behind a compulsory company pension, drawing support from Finance Minister Lars Klingbeil. Yet unions including Verdi and the IG Metall have voiced concerns about the burden on workers close to retirement. The GDV, the insurance industry association, calls the capital pension an important step but fears overreach and proposes an opt-out model instead.
The coalition committee is scheduled to meet on 1 July to map out next steps. Topics will also include bringing the self-employed and politicians into the statutory pension system. Meanwhile, since early 2026, the Second Company Pension Strengthening Act is already in effect, providing additional incentives for workplace retirement provision.
