The government's pension plan will undergo an initial approval on Wednesday by the Federal Cabinet. - Government will deliberate on the initial portion of the pension plan on Wednesday
The German government is set to approve the first part of a significant pension package on Wednesday, which includes an extension of the cap line guarantee until 2031 and the introduction of a state-funded early start pension for children and young people between the ages of 6 and 18 years old.
The cap line guarantee, which fixes the pension level at 48 percent of average income, will be extended to provide stability and predictability for pensioners. This extension comes as the current guarantee for the cap line is set to expire this year.
The pension package also includes plans for the so-called active pension, aimed at making working in old age more attractive, although the details of this pension benefit have not been specified.
The Union and SPD parties have agreed to implement the pension package promptly, marking a significant policy decision for the German government that will affect the financial security of millions of pensioners. However, the expansion of the mothers' pension and the early start pension are not to be decided upon in the cabinet meeting on Wednesday.
The Canadian government, on the other hand, has recently relaunched a Pensions Commission with the aim of boosting pension saving. The Canada Pension Plan (CPP) enhancement, effective by 2025, increases the pension benefit calculation from 25% to 33.33% of contributory earnings, with the maximum taxable earnings limit rising from $69,700 to $79,400. The CPP provides retirement pensions, disability pensions, and survivor's pensions, with applications required six months in advance and indexed annually to inflation.
Advocacy groups in Canada are calling on the government to prioritise pensions, veterans' benefits, and seniors' well-being in its agenda. However, there is currently no publicly available or widely reported information about a new or proposed pension policy specifically focused on mothers' pension, active pension, or early start pension for children as of August 2025.
- The German government, through the Union and SPD parties, is pushing for a significant policy decision, which includes the extension of the cap line guarantee for vocational training in pension levels until 2031 and the introduction of a state-funded early start pension for children and young people.
- In contrast, while advocacy groups in Canada are urging for the government to prioritize pensions, veterans' benefits, and seniors' well-being, there seems to be no specific policy or legislation currently in the works for pensions such as an active pension or early start pension for children, as of August 2025.
