German Employers Advocate Linking Retirement Age to Life Expectancy

Ahead of the federal election, business leaders call for reforms to social systems, including a dynamic retirement age and reduced payroll taxes.

Rainer Dulger, head of the German Employers' Association, proposes tying the retirement age to average life expectancy to ensure the sustainability of the pension system.
Dulger also suggests creating incentives for individuals to remain in the workforce beyond the standard retirement age, particularly in less physically demanding roles.
Critics, including the German Trade Union Confederation (DGB) and SPD politicians, argue that raising the retirement age would disproportionately impact workers in physically intensive jobs and amount to pension cuts.
Dulger emphasizes the need for broader reforms in social systems, including reducing payroll taxes to increase take-home pay and addressing inefficiencies in healthcare and welfare programs.
He calls for an annual parliamentary debate on the future of social security systems, urging policymakers to confront politically sensitive but necessary reforms.