Overview

• Statutory retirement age remains capped at 67 with early-retirement schemes like Flexirente available from age 63 under 0.3 percent monthly deductions or without penalty after 45 years of contributions.
• The governing CDU/CSU–SPD coalition has rejected mandatory age increases and instead expanded incentives such as the tax-exempt Aktivrente bonus and the Mütterrente allowance.
• Economics Minister Katherina Reiche argues that extending working lives is essential to avert a collapse of the pay-as-you-go system and supports raising the entry age toward 70.
• A proposal by economists Martin Werding and Marcel Thum recommends linking future retirement age adjustments to rising life expectancy to shore up long-term finances.
• Countries including the Netherlands, Finland and Sweden have already adopted life-expectancy–based retirement adjustments, highlighting Germany’s lag in pension reform