< Back to all clusters
[POLITICS] · Germany · 87 sources

started · updated

German Chancellor Friedrich Merz advances pension overhaul linking retirement age to life expectancy

A government‑appointed experts’ commission presented 33 recommendations to overhaul Germany’s pension system. The core of the plan is to tie the statutory retirement age to life expectancy, raising it gradually to about 67.5 years by 2041 and potentially to 70 years by the early 2090s. Early retirement at 63 with full benefits would be scrapped and the earliest age for reduced‑benefit early retirement would be lifted to 64. A mandatory capital‑funded pillar, modeled on the Swedish system, would start in 2031, with workers and employers each contributing an extra 2 percent of wages, creating a fund that will invest in capital markets and aim to boost pension levels in the 2040s‑2050s. The coalition of the CDU/CSU and SPD supports implementing the package as a whole; Chancellor Friedrich Merz defended the reform in the Bundestag, urging lawmakers to act swiftly, while labour unions, industry groups and some SPD politicians voiced concerns over minijob proposals, civil‑servant coverage and the impact on low‑wage workers.

The government plans to channel at least €30 billion a year into the new fund, arguing that inaction would endanger the system’s sustainability. The reforms are slated for parliamentary debate before the summer recess, with the coalition holding a slim majority.

Sources

3 months ago
3 months ago
Wenn Babyboomer in Rente gehen [www.publik-forum.de]
3 months ago
Merz backs pension overhaul [brusselssignal.eu]
3 months ago
3 months ago
3 months ago
3 months ago
3 months ago
3 months ago
3 months ago
3 months ago
3 months ago