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CDU Business Council Urges Raising Retirement Age Above 67 as Pension Overhaul Debate Escalates

The move sharpens a broader rethink of pensions, weighing international models against fiscal limits plus distributional risks.

Overview

  • CDU-affiliated Wirtschaftsrat called for a consequent increase of the statutory retirement age beyond 67, citing demographic pressures and lessons from Sweden, Denmark and the Netherlands.
  • Labour Minister Bärbel Bas says Germany needs a whole new pension system but rejects a blanket rise in the retirement age, positioning the SPD against the CDU-linked push.
  • A federal commission is currently examining options that include retirement-age rules, wider compulsory coverage of the self-employed and capital-funded elements after the coalition stabilized the replacement level in December.
  • Comparisons with Austria highlight trade-offs: average gross pensions are higher there (about €1,646–€1,800 vs roughly €1,120 in Germany), supported by larger subsidies, a 22.8% contribution rate versus 18.6% and much broader mandatory coverage.
  • Analysts note Austria’s 15-year minimum for entitlement would lift averages but could leave around 1.5 million contributors—about 80% women—without a pension, underscoring equity concerns in potential reforms.