Germany proposes funded capital pension as early retirement interest rises

The European Commission's draft pension reform suggests a state‑financed capital pension that would provide an additional monthly income for new retirees. For a 55‑year‑old earning €6,000 gross, the estimate is about €60 extra per month; for a €4,500 salary, roughly €50. The scheme relies on long‑term savings and would be funded by a 2 % increase in social‑security contributions, split equally between employees and employers. Workers would see a modest net wage reduction of around €24 per month, while the total contribution to the capital pension would be €90 per month.

A DAK‑Health survey of roughly 7,000 German employees shows that 44 % are considering early retirement, with the share rising to 52 % among those over 50. Health status influences the decision: 49 % of those who feel healthy would retire early, compared with 60 % of those who assess their health poorly. The findings highlight growing concern over retirement timing as the pension system evolves.