Germany advances pension reform to counter low birthrate and aging population

Germany faces a persistent low fertility rate of about 1.35 children per woman, which threatens the sustainability of its pay‑as‑you‑go pension system as the working‑age population shrinks. Demographic analysts argue that reliance on immigration can no longer offset the long‑term decline.

The government‑appointed Rentenkommission delivered a final report with 33 proposals aimed at securing the pension scheme. Key measures include adding a partially funded pension pillar modeled on Sweden, gradually raising the statutory retirement age in line with rising life expectancy, and extending mandatory contributions to self‑employed professionals, civil servants, parliamentarians and corporate executives.

CDU Bundestag member Michael Breilmann, speaking in Castrop‑Rauxel, urged that these reforms be enacted without delay, stressing that “the burden must not be shifted onto the next generation” and emphasizing the need for generational equity. While the proposals have attracted criticism from groups such as the AWO for potentially increasing social inequality, they represent the most comprehensive attempt yet to adapt Germany’s pension system to an ageing society.