Germany proposes pension reform to raise retirement age to 70 by 2090

A German expert commission, supported by Chancellor Friedrich Merz, has presented a 33-point plan to ensure the sustainability of the national pension system. The proposals suggest linking the retirement age to life expectancy, reaching 67.5 years by 2041, 68 by 2051, and approximately 70 by 2090. To address financial strain, the commission recommends abolishing early retirement at 63, though it suggests specific provisions for individuals with health issues or strenuous occupations. Another key recommendation includes implementing a Swedish-style model where a portion of mandatory pension contributions is invested in the stock market. The plan also proposes expanding mandatory pension coverage to include civil servants and the self-employed. Chancellor Merz stated that these measures aim to stabilize the system and ensure intergenerational balance. The commission spent five months evaluating these reforms to mitigate the effects of an aging population.