Germany news: Pension overhaul may push retirement age to 70
06/21/2026 June 21, 2026 German panel proposes sweeping pension overhaul A government-appointed commission has proposed a major overhaul of Germany’s pension system, including raising the
06/21/2026 June 21, 2026 German panel proposes sweeping pension overhaul A government-appointed commission has proposed a major overhaul of Germany’s pension system, including raising the retirement age and introducing a funded pillar. According to German news reports over the weekend, the changes would gradually lift the retirement age to 70 by around the 2090s and abolish the full pension option at 63.
At the core of the plan is a new capital-funded pension within the statutory system, complementing the current pay-as-you-go model. The scheme would be financed by an additional 2% contribution from gross wages, split between employers and employees, and invested through a state-managed fund.
The retirement age, currently set to reach 67 in the early 2030s, would be linked to life expectancy, rising incrementally over time. The proposals also include scrapping most pension contribution-free mini-jobs, bringing new self-employed workers and lawmakers into the statutory pension system, and reintroducing a sustainability factor to slow annual pension increases.
The commission is expected to present its recommendations to Chancellor Friedrich Merz's govenrment on Tuesday.
The BriefWire