German Central Bank President Proposes Raising Retirement Age to Address Economic Challenges

Joachim Nagel suggests linking retirement age to life expectancy as a response to workforce shortages and structural economic hurdles.

Bundesbank President Joachim Nagel advocates for a gradual increase in Germany's retirement age starting in 2031, tied to rising life expectancy.
Nagel highlights that longer life expectancy means individuals can spend additional years in work while maintaining better health.
Germany's economic slowdown is attributed to structural issues such as high energy costs from the Ukraine war, the transition to a CO2-neutral economy, and demographic changes.
Nagel calls for reducing incentives for early retirement and improving childcare and eldercare services to enable more people to participate in the labor market.
Other recommendations include reducing bureaucracy, attracting foreign skilled workers, and enhancing energy policy stability to improve Germany's economic competitiveness.