Germany is set to increase its retirement age, aiming for around 70 years old by the early 2090s. Chancellor Friedrich Merz has proposed this change as part of a plan to future-proof the pension system. The current age of 67 will be adjusted gradually over time, following rising life expectancy.
The government aims to pass these reforms before the summer recess next month. Critics have raised concerns about fairness and the potential impact on certain groups, such as those in physically demanding jobs who may not see a reduction in their pension. Merz argues that his proposal is comprehensive and will benefit young people by lifting a “tremendous burden” from their shoulders.
The plan also involves investing obligatory contributions in the stock market to increase and safeguard the fund’s value for future generations. Expanding compulsory pension contributions to include civil servants and self-employed workers is another key recommendation.
Merz, who has experience as an investment banker, believes that taking a long-term perspective is crucial for the pension system’s stability. The government hopes that these reforms will address Germany’s growing challenge of supporting an aging population with fewer working-age individuals.
Source: https://www.theguardian.com/world/2026/jun/23