Overview
- Economist Robert Rühl of Universität Bayreuth told reporters that an average-earning member of Generation Z would pay about €10,000 more across their working life if the penalty-free 'Rente mit 63' remains in place.
- Coalition negotiations are ongoing as the government weighs the Rentenkommission’s recommendation to abolish the long-insured early-retirement option and introduce a partly capital-funded pension.
- The Rentenkommission proposes a Kapitalrente that would build individual capital accounts, invest a share of contributions in equities, and require higher contributions to shore up pensions under demographic strain.
- New IW analysis shows many past cohorts already used early-retirement routes — for the 1958 cohort only about 37% retired at the statutory age while 27% left under the 45-year rule — which sharpens the fiscal challenge the reform seeks to address.
- If policymakers keep the early-retirement option, younger workers would face higher lifetime contributions and the political fight inside the coalition, driven by strong SPD resistance, will determine transition rules and contribution levels.