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3w ago

Germany Considers Raising Retirement Age to 70 Amid Pension Strain

Demographic shifts and financial pressures prompt debates on reforms, including dynamic age adjustments and increased taxation for retirees.

Rentenreform, aber wie? Debatte nimmt heftige Züge an
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Overview

  • Germany's pension system faces sustainability challenges due to an aging population and fewer contributors to the workforce.
  • Discussions are ongoing about raising the retirement age to 70, inspired by models in Denmark and the Netherlands, though no decision has been made yet.
  • A 3.74% pension increase, effective July 2025, will boost retiree incomes but push more pensioners into taxable income brackets, affecting approximately 73,000 individuals.
  • Experts propose linking the retirement age to life expectancy to stabilize the system, while the 'Aktiv-Rente' plan would allow retirees to work with tax incentives.
  • The current retirement age in Germany is gradually rising to 67 by 2031, with provisions for earlier retirement under specific conditions, often with financial penalties.