Overview
- The government announced on Tuesday, June 23, 2026, that it will move to implement all 33 recommendations from a 13-member pension commission, saying the measures form a single, interlocking reform package.
- Key policy changes include a gradual rise in the statutory retirement age, the end of penalty-free early retirement after 45 contribution years, and the creation of a mandatory, paritally funded capital pension to sit alongside the pay-as-you-go system.
- Labor leaders and eastern Germany representatives immediately rejected central elements; the DGB warned the changes on work length and loss of long-service protections are unfair, and the federal commissioner for the east said cuts to the pension level after 2031 would raise poverty risks in former East Germany.
- The commission projects sizable long-term gains from the capital component — for example an estimate of up to about €770 extra per month after 45 years of contributions — but the government has not yet published legal details, funding formulas, or transition rules for near-retirees.
- Next political steps include a coalition meeting on July 1 and fast-moving legislative work that could aim for passage by the end of 2026, with public protests and party debates expected to shape final terms and safeguards for vulnerable groups.