German Chancellor Friedrich Merz has thrown the government’s weight behind a proposal to gradually raise the statutory retirement age above 67, linking it to rising life expectancy. The plan, drafted by a special commission of experts, aims to shore up a pension system that is increasingly strained by an aging population.
Under the current rules, Germans can receive a full pension at 66, provided they have at least 45 years of contributions. The proposed reform, endorsed by Merz on behalf of the entire cabinet, would start in 2031 by adding one month to the required working life each year for a decade. After that, the retirement age would be automatically indexed to average life expectancy.
The commission, which included economists, labor lawyers, doctors and lawmakers, also recommended an additional 2 percent pension contribution – split evenly between employers and employees. This extra levy is meant to provide a financial buffer for the system.
Growing fiscal pressure and political pushback
Germany’s pension system is coming under mounting pressure as the baby-boom generation retires and the ratio of workers to pensioners shrinks. According to the German pension insurance authority (DRV), at the end of 2025, 19.1 million people were drawing pensions. Annual spending on pensions reached 301 billion euros last year.
Unions have already voiced strong opposition to the proposed changes. They argue that raising the retirement age and increasing contributions will hit lower-income workers hardest and that many people in physically demanding jobs simply cannot work longer. – The burden is being placed on those who are already struggling – said a spokesperson for the German Trade Union Federation (DGB).
Government pushes for swift legislation
Federal Labor Minister Barbel Bas has called for the bill to be fast-tracked through the Bundestag. She argued that delaying reforms would only deepen the crisis. – We need to act now to secure pensions for future generations – Bas stated. The government hopes to pass the law before the next election cycle, but it faces an uphill battle given the strong opposition from unions and parts of the opposition.
The debate in Germany is being closely watched across Europe, as many countries face similar demographic challenges. Poland, for instance, is also grappling with an aging workforce and rising pension costs, though its current retirement age is lower at 60 for women and 65 for men.
Źródło: wnp.pl, Fot. Mahmoud Mahdi Photo / Shutterstock
