The German government is considering cutting the “Mothers’ Pension” to make €13 billion available for budget-balancing. According to the German Institute for Economic Research (DIW), the cost of this form of pension corresponds to around 3% of total annual pension insurance expenditure. Therefore the budget-cutters’ hysteria about cuts is absurd. The Mothers’ Pension benefits all women who had children before 1992. It is intended to recognize their child-raising periods retroactively and thus improve their pensions. However, the DIW points out that this group of pensioners will become smaller over time, so that the costs will automatically fall.
The DIW has examined the consequences of abolishing the Mothers’ Pension and comes to the conclusion that this would increase the risk of poverty for many women, significantly increase the pension gap between men and women, and place a considerable burden on around 9 million households with medium and low incomes. “It is also highly unlikely that this withdrawal of benefits would be constitutionally approved,” said the DIW in its study published on July 31, pointing to the fact that the Mother’s Pension is not at any government’s disposal but is protected by a constitutional ruling.
