Fierce debate in Germany over pensions, with raising the retirement age to 70 also on the table

A plan to change Germany’s pension system has sparked extensive political and social debate. Centrist forces consider it an acceptable compromise, while opposition parties have voiced objections.

The package of 30 proposals for pension reform, drafted by a special commission of experts and politicians, has been welcomed by conservative groups but has met resistance from the opposition and trade unions.

Reactions began even before the official publication of the full report by the 13-member commission. Its main points appeared in advance this weekend in the German media, triggering a wave of commentary. According to government sources in Berlin, the government is expected to soon approve a plan based on these reforms.

At a federal government open day event in Berlin, Chancellor Friedrich Merz told the public that these reforms represent the only way to keep Germany’s costly pension system affordable in the future.

Main proposals for pension reform

The measures presented, which became public earlier than originally planned, partly because of pressure on the government, include a combination of compromises and several long-expected ideas.

Legal retirement age linked to life expectancy

Under the proposal, the legal retirement age in Germany would be determined according to life expectancy. The commission’s calculations show that this age would reach 67.5 in 2041, 68 in 2051, and by 2091 would even rise to 70.

This point has drawn criticism from the left. Philipp Türmer, head of Jusos, the youth organization of the Social Democratic Party (SPD), told German radio station DLF that it would be fairer for the retirement age to be linked to the number of years of contributions paid into the system.

Jan Scharpenberg, a pensions expert at financial advisory company Finanztip, said this approach makes sense, even though with current life expectancy projections it would not bring major changes in the short term.

No early retirement at age 63

Another proposal would eliminate the option of retiring at 63 without losing benefits, even for those who have contributed to pension funds for 45 years. This idea has been opposed especially by trade unions, which argue that industrial workers are more exposed to physical and psychological exhaustion. IG Metall chair Christiane Benner told DLF radio that the proposal “completely ignores” the living and working conditions of employees in industrial sectors.

Jan Scharpenberg described the measure as a “bitter blow” for some groups. “It may be necessary, but it is certainly a harsh measure,” he said. It is also envisaged that the reduction in benefits for those who choose early retirement will increase.

This move is expected to affect a large number of workers in Germany. A recent Forsa institute survey, conducted for public health insurer DAK, showed that 44% of Germans would like to retire early. According to the data, the longer people work, the more likely they are to take medical leave.

More contributors, fewer civil servants

Another part of the plan aims to change the system by limiting the number of people who receive civil servant status, since in Germany they contribute to a separate state pension scheme. Labor Minister Bas has called for this system to be abolished entirely, proposing that civil servants pay into the same scheme as everyone else.

As a compromise, the commission has proposed that the level of civil servants’ pensions be harmonized with the general pension system. Public broadcaster ZDF also reported that the commission aims to reduce the number of people who can become civil servants, given that in some German states teachers can also hold that status. /dw