German Economic Expert Calls for End to Early Retirement at 63

Monika Schnitzer urges reforms to Germany's pension system, advocating for a higher retirement age and increased inheritance taxes to address financial challenges.

• Monika Schnitzer, head of Germany's Council of Economic Experts, has reiterated her call to abolish the 'Rente mit 63' program, which allows early retirement after 45 years of contributions.
• Schnitzer argues that the policy disproportionately benefits less burdened workers while excluding those in physically demanding jobs who often cannot meet the 45-year requirement.
• She warns that without reforms, rising pension costs could push contribution rates from the current 18.6% to over 26% by 2060, burdening Germany's social security system.
• Schnitzer has proposed indexing pension increases to inflation rather than wage growth to stabilize costs in an aging society.
• In addition to pension reforms, she advocates for expanding inheritance taxes, particularly on business transfers, while rejecting a wealth tax due to its administrative inefficiency.

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