Merz backs plans to raise Germany’s retirement age to 70 in pension changes
Summary
Germany plans to raise the retirement age to about 70 by the early 2090s to help keep its pension system stable as people live longer. Chancellor Friedrich Merz supports these changes, which also include investing pension contributions in the stock market and expanding who must pay into the system.Key Facts
- Germany's retirement age will gradually increase to around 70 by the early 2090s, linked to life expectancy.
- The current pension age is set to be 67 in the early 2030s.
- Early retirement options will be removed, including the right to retire at 63 after 45 years of work without pension cuts.
- Pension contributions will be invested in the stock market to grow the fund’s value.
- The plan includes making civil servants and self-employed people pay into the pension system.
- Germany has one of the fastest-aging populations, with 23% of people aged 65 or older in 2024.
- The reforms aim to prevent the pension system from collapsing and distribute the financial burden more fairly among generations.
- The government wants to pass the reforms quickly, but some politicians and unions have raised concerns about fairness.
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