The German government has been urged to finalise its long-discussed pension package this year, warning that any further delay could undermine public confidence and trigger an earlier-than-expected fall in the pension level.

In a statement issued on Monday in Berlin, the United Services Union (ver.di) criticised the CDU/CSU parliamentary group for signalling resistance to the coalition’s Rentenpaket II, a reform designed to secure the statutory pension level at 48 per cent and gradually raise the contribution rate.

The package, developed under the previous coalition and carried forward by the current CDU/CSU–SPD government, still requires parliamentary approval before it can be enacted.

The union’s intervention comes amid renewed calls from some CDU/CSU members – including Federal Family Minister, Karin Prien – to postpone the parliamentary vote into next year.

Ver.di chair, Frank Werneke, warned that such a delay would send the wrong signal to pensioners and savers.

“Current and future pensioners expect reliability from politicians. Without a decision this year, the pension level will begin to decline as early as 2026,” he argued.

The dispute marks the latest phase in a months-long political standstill.

Although the cabinet approved the package in the spring, progress has stalled following concerns raised within the governing coalition, including from CDU and CSU MPs, about long-term affordability and intergenerational fairness.

The conservative parliamentary youth group has been particularly vocal, warning that the reforms would place an undue burden on younger workers.

Werneke rejected that argument, stating that the debate “ignores the realities of life for millions of people”, pointing to low average pensions for new retirees – €929 for women and €1,355 for men.

He accused the youth wing of the CDU and CSU of acting “presumptuously”, adding: “They are not acting in the interests of the younger generation at all.

If the pension level is lowered from 2032 onwards, it will not only affect the baby boomer generation, but also all subsequent generations.”

Earlier this year, Germany’s government reiterated its plans to merge the country’s various pension systems, a move intended to safeguard retirement provision nationwide but one that has drawn criticism from across the political spectrum.

Meanwhile, a recent analysis from banking group LBBW warned that German demographic shifts were a “time bomb” likely to push the statutory pension system to its limits over the coming decades.

Against this backdrop, the government has been pushing for a swift parliamentary vote to avoid automatic downward adjustments to the pension level under existing rules.

The outcome will be closely watched by Germany’s pensions sector, which has previously warned that prolonged uncertainty risks eroding public trust and complicating long-term planning for both funds and their members.

A Bundestag decision is expected to hinge on whether the CDU and CSU ultimately back the package or continue to press for further negotiations into 2026.

The CDU, CSU and Prien did not respond to requests for comment.

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