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German Coalition Splits Over Pension Age as Experts Urge Longevity Link

A new pension commission will examine automatic age hikes tied to life expectancy after SPD rejected compulsory later retirement

Martin Werding ist Professor für Sozialpolitik und öffentliche Finanzen an der Ruhr-Universität Bochum
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Overview

  • Economics Minister Katherina Reiche argues rising life expectancy and demographic shifts make longer working lives essential beyond the planned rise to 67 by 2031
  • Economist Martin Werding and fellow experts propose rule-bound increases reaching 68 by 2050 and 69 by 2070, plus higher deductions for early retirement and abolition of the widow’s pension
  • SPD leaders Raed Saleh and Bärbel Bas have condemned mandatory extensions as disrespectful to hard-working and health-impaired citizens and defended current early-retirement provisions
  • A gutachten commissioned by the Friedrich-Naumann-Stiftung warns that without scrapping the age-63 early pension and strengthening the sustainability factor, Germany’s pay-as-you-go system faces collapse
  • The government-appointed commission is tasked with delivering detailed reform recommendations, though no new legislation has been agreed beyond the existing plan to raise the retirement age to 67 by 2031