Monika Schnitzer, head of Germany’s Council of Economic Experts, has called for significant pension reforms.

She advocates raising the retirement age and abolishing the "Rente mit 63" scheme, which allows retirement after 45 years of contributions.

Schnitzer argues that this policy benefits the wrong groups, as many physically demanding jobs rarely reach 45 years of contributions.

She also warns that the SPD’s pension plans are unsustainable in an aging society, with contribution rates potentially rising from 18.6% today to over 26% by 2060. To address funding challenges, Schnitzer suggests expanding inheritance taxes to include business heirs, arguing it is fair and economically viable.

However, she opposes a wealth tax for billionaires, citing high administrative costs.

Schnitzer emphasizes the urgent need for reforms to ensure the system’s sustainability.