Merz Backs Plan to Raise Retirement Age to 70

Chancellor Friedrich Merz is backing proposals for a major overhaul of Germany’s pension system that could push the retirement age to about 70 by the early 2090s, The Guardian reported.

An expert commission recommended the changes as Germany faces an aging population and mounting pressure on public finances.

The proposals include linking the retirement age to life expectancy, ending the option to retire at 63 after 45 years of work and investing part of statutory pension contributions in the stock market. Civil servants and the self-employed would also be required to pay into the system.

Merz said the measures were needed to prevent Germany’s pension system from collapsing and to protect younger generations from a growing financial burden.

The retirement age is already set to rise to 67 for people leaving the workforce in the early 2030s. Under the commission’s proposals, it would then continue to increase gradually in line with life expectancy.

Critics warn that ending early retirement would hit workers in physically demanding jobs particularly hard. Others have raised concerns about exposing pension savings to financial-market risks.

The government wants to pass the reforms before the summer parliamentary recess, although the proposals still require parliamentary debate and approval.

(mja)