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Germany’s Pension Clash Deepens as Spahn Sees Higher Retirement Age, Merz Urges Contribution‑Linked Benefits

Fiscal pressures plus distributional concerns frame a contentious push for incentives to work longer.

Overview

  • Jens Spahn predicted on ARD that the retirement age will rise further in the 2030s beyond 67 through gradual increases.
  • Chancellor Friedrich Merz said the statutory age should stay at 67 but proposed tying pension levels more closely to years of contributions, drawing confusion in the CDU and rejection from SPD deputy Dagmar Schmidt as socially unjust.
  • The Bundestag is weighing a package that would legally hold the standard pension at 48% of average earnings, which economists Clemens Fuest and Lars Feld warn would drive major budget costs by removing stabilizing factors.
  • Government parties are discussing an Aktivrente that would leave up to €2,000 of earnings by pensioners tax‑free, with a dispute over applying the progression clause to other income.
  • Despite the scheduled rise to 67, many retire earlier via existing routes such as the 45‑year rule, with nearly a quarter using the early‑retirement option last year according to cited figures.