Overview
- The proposal from economist Jens Südekum would replace a fixed retirement age with eligibility based on contribution years, likely requiring many late entrants such as academics to work to about 70 to reach a 45‑year threshold.
- Labor Minister Bärbel Bas called the idea fundamentally good and Chancellor Friedrich Merz signaled openness, while coalition leaders point to the forthcoming commission review.
- Economists and social groups, including DIW’s Marcel Fratzscher and the employers’ federation BDA, warn the model would worsen inequalities for women and people with interrupted careers and deliver little lasting fiscal relief.
- The government plans to establish the pension commission before Christmas to develop reform options, with recommendations due by mid‑2026.
- Separately, the Bundestag‑approved Aktivrente takes effect in 2026, letting retirees earn up to €2,000 a month tax‑free; DIW expects roughly 230,000 working retirees to benefit, mostly higher earners, with an estimated €890 million annual tax revenue loss.