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Pension reform plans

2026-06-24 08:36:00, Kosova & Bota CNA

The plan to reform Germany's pension system has sparked a lot of reactions. Center-right politicians call it a good compromise, while opposition parties are unhappy.

The 30 proposals for pension reform in Germany, presented by a special commission of experts and politicians, were met with praise from conservative groups and opposition from the opposition and unions.

Even before the 13-member commission's detailed report is officially published, the main proposals, which were first reported in German media this weekend, have sparked widespread reactions. Government sources in Berlin say the government is expected to approve a plan based on these reforms soon.

Speaking to the public at a federal government open day event in Berlin, Chancellor Friedrich Merz stressed that the reform is the only way to ensure that Germany's expensive pension system remains affordable in the future.

Federal Labor Minister Bärbel Bas of the Social Democratic Party (SPD) also defended the need for reforms. “We are now introducing measures for the younger generation to have higher pensions,” she said. “And we must ensure that fewer people retire early.”

Main proposals for pension reform

The proposals, which were presented earlier than originally planned, partly due to pressure on the government, contain a mix of compromises and some long-awaited ideas.

The legal retirement age is related to life expectancy.

The legal retirement age in Germany will be linked to life expectancy, which according to the commission's calculations means that in 2041 it will reach 67.5 years, in 2051 it will be 68 years and by 2091 even 70 years.

This has drawn criticism from left-wing parties. Philipp Türmer, head of Juso, the youth organisation of the Social Democratic Party (SPD), told German radio station DLF that it would be fairer to link the retirement age to the number of years of contributions to the system.

Jan Scharpenberg, a pension expert at financial advisory company Finanztip, said the idea makes sense, although given current life expectancy projections, it wouldn't make much of a difference in the short term.

No early retirement at age 63

The proposal would remove the option to retire at 63 without losing benefits, even if someone has contributed to the pension fund for 45 years. The idea has been particularly criticized by unions, who say workers in the industrial sector are more affected by physical and psychological stress. Christiane Benner, head of the IG Metall union, told DLF radio that the proposal “completely ignores” the living and working conditions of workers in the industrial sectors.

Scharpenberg said it could be a “bitter blow” for some. “It may be necessary, but it is definitely a harsh measure,” he said. Another change will be an increase in the reduction in benefits for those who retire early.

The change is expected to affect many workers in Germany: a recent survey by the Forsa institute for the public health insurance institution DAK showed that 44% of Germans would like to retire early, and the longer people work, the more likely they are to take sick leave.

More contributors, fewer civil servants

Another part of the plan aims to reform the system by limiting the number of people who become civil servants, since in Germany they contribute to a separate state pension scheme. Labor Minister Bas has called for this system to be abolished completely, and civil servants to be forced to pay into the same system as everyone else.

As a compromise, the commission proposed that the level of civil servant pensions be brought into line with the general pension system. Public broadcaster ZDF also reported that the commission wants to reduce the number of people who can become civil servants, as in some German states teachers can also have this status./ DW