German trade union ver.di has warned against a proposal to scrap early retirement provisions for long-term contributors, arguing that workers with 45 years of contributions should retain the right to retire without pension deductions.

The warning came in response to recommendations from the country's Pension Commission, which has published its final report on the future of Germany's pension system.

ver.di chairman, Frank Werneke, said workers who have spent decades in physically demanding roles must continue to have access to early retirement without financial penalties.

“Anyone who has worked hard for 45 years must have the right to retire early without pension deductions,” Werneke said, adding that an early retirement option is also important for long-term insured workers with 35 or more contribution years.

“Tens of thousands of people in nursing, parcel delivery, waste management and other physically demanding occupations simply cannot continue working due to health reasons and are often forced to retire early. Devaluing the lifetime contribution of these people is unacceptable,” he argued.

Werneke also raised concerns about proposals to increase capital funding within the pension system, arguing that workers due to retire in the 2030s and 2040s would see little benefit from the creation of a capital reserve.

“People retiring in the 2030s and 2040s will gain little from the creation of a capital fund,” he said, arguing that a legally binding safeguard was needed to maintain the pension level at a minimum of 48 per cent beyond 2031.

Werneke also suggested that Germany should build on existing pension arrangements rather than “starting from scratch with capital funding in the first pillar”, including through the introduction of mandatory occupational pension provision.

The union also criticised the commission for failing to put forward concrete measures to tackle old-age poverty. Describing the omission as “disappointing”, Werneke said it would particularly affect women.

However, Werneke welcomed some of the commission's recommendations, including proposals to largely abolish mini-jobs and to bring members of parliament, self-employed workers and company executives into the statutory pension system.

“Particularly in the retail sector, this form of employment is already contributing to old-age poverty on a massive scale,” Werneke said.

In conclusion, he warned that the commission's proposals “must not simply be waved through” and called on policymakers to revisit the recommendations and make substantial changes.

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