German Chancellor Friedrich Merz has officially backed a proposal from a special expert commission to gradually raise the statutory retirement age above 67. The system is under growing pressure from an ageing population and soaring pension costs.
The commission, composed of economists, labour law specialists, doctors and lawmakers, recommended increasing the retirement age to 67 for both men and women. Currently, a full pension is available at 66 for those with at least 45 years of contributions.
Starting in 2031, the required working period would be extended by one month each year for a decade. After that, the retirement age would be linked to average life expectancy.
Proposed changes
The commission also proposed an additional pension contribution of 2 percent of monthly income, split equally between employers and employees. This extra money is intended to shore up the system’s finances.
– The situation is serious and demands immediate action – said Chancellor Friedrich Merz, adding that without reform the system would become unsustainable.
Federal Labour Minister Barbel Bas urged the Bundestag to fast-track the legislation, describing the current trajectory as alarming.
Reactions and criticism
Trade unions have sharply criticised the proposals, arguing that workers in physically demanding jobs cannot be expected to remain in the workforce longer. They also oppose the idea of linking the retirement age to life expectancy, which they say penalises those in lower-skilled, physically straining occupations.
– We cannot accept a solution that puts the entire burden on employees – said a union representative.
According to the German Pension Insurance (DRV), at the end of 2025 some 19.1 million people were receiving pension benefits. Total annual spending on pensions last year reached 301 billion euros.
System’s financial strain
The DRV report highlights that the system is already under severe financial pressure. The number of retirees is rising while the workforce shrinks, creating an ever-wider gap between contributions and payouts.
Without reform, the reserve fund is expected to be depleted within a decade. The government sees the proposed changes as the only viable way to avoid a collapse.
The debate in Germany is being watched closely across Europe, as many countries face similar demographic challenges and are considering their own pension reforms.
Źródło: WNP.PL, Fot. Mahmoud Mahdi Photo / Shutterstock
