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Labor Minister Backs Tying Retirement Start to Years of Contributions

She frames the change as fairer for people who begin paying in earlier than university graduates.

Overview

  • Bärbel Bas said on ARD that linking the pension start to contribution years is a promising and more equitable approach, arguing those who pay in earlier should be able to retire earlier.
  • Bas outlined two options for review: setting the retirement start by life expectancy or by a required span of paid-in contribution years.
  • The idea comes from economist Jens Südekum, an adviser to Finance Minister Lars Klingbeil, who rejects a blanket higher age such as 70 and calls contribution-year coupling a fairer alternative.
  • The government plans to constitute a pensions commission before Christmas to examine options and deliver proposals by mid-2026, following the Bundestag’s recent passage of a pensions package that still awaits Bundesrat approval.
  • Under current law the standard age rises to 67 by 2031, with early, penalty-free retirement for those with 45 contribution years; reactions split as CDU’s Carsten Linnemann calls the proposal discussable while the Left warns against pitting workers against graduates.