Merz backs plans to raise Germany’s retirement age in pension reforms

‘No citizen needs to worry,’ said the German chancellor, Friedrich Merz. Photograph: Sean Gallup/Getty Images View image in fullscreen ‘No citizen needs to worry,’ said the German chancellor, Friedrich Merz. Photograph: Sean Gallup/Getty Images Merz backs plans to raise Germany’s retirement age in pension reforms Recommendations from commission propose gradual rise in retirement age to about 70 by the early 2090s Europe live – latest updates Germany will gradually raise its retirement age to about 70 by the early 2090s under recommendations backed by the chancellor, Friedrich Merz , as a means of future-proofing the pension system for an ageing population. Presenting its findings on Tuesday, an expert commission set up to explore reforms to the pension system said retirement age should be linked to rising life expectancy and early retirement should be scrapped. “No citizen needs to worry,” said Merz, as he said the measures would prevent the collapse of the creaking pension system and strengthen the social contract between generations. Young people, he argued, would be given a “reason for optimism” by the measures, which would “lift a tremendous burden” from their shoulders. The commission of experts sat for long daily sessions from January until its 33-point plan was presented on Tuesday. Among its key recommendations are for the obligatory contributions made by workers and employers to be invested in the stock market in order to increase and safeguard the fund’s value for future generations. It also proposed expanding compulsory pension contributions to include civil servants and self-employed workers. The current pensionable age for anyone retiring in the early 2030s in Germany is 67, a figure set about two decades ago. The panel said this should be gradually increased in line with life expectancy, rising to about 70 by the early 2090s. Germany has one of the fastest-ageing populations in the world and, like many western countries, has faced a challenge over how to ensure the pension system has a future when ever fewer workers are financing the pensions of ever more, ever longer-living retirees. The government hopes to pass the reforms before the summer recess next month, although they must still be debated and voted on in parliament. “All elements of this reform package must now be implemented swiftly,” said Merz, insisting: “Failure is not an option.” The leader of the conservative Christian Democrats said his coalition was united in not wanting to get caught in the weeds of the wording, after some leftwing members of the government from his junior coalition partners, the Social Democrats, as well as trade unions, had questioned the fairness of some of the recommendations. Critics targeted the proposal to scrap the right of those who have worked for 45 years to retire at 63 without seeing any reduction to their pension, saying it would penalise those in physically demanding and lower-paid jobs, such as builders or carers. The experts pointed