Germany's Pension Age Heading to 70 By the End of Century

Germany's government-appointed pension commission presented a 33-point overhaul Tuesday that would gradually raise the retirement age to around 70 by the early 2090s.

The plan addresses a structural demographic problem that has only deepened over the years: about 23% of Germans, or 19 million people, were aged 65 or older in 2024, up from just 15% in 1991.

The proposal would return the retirement age to the level Otto von Bismarck first set when he introduced the world's earliest state pension system in 1889.

What the Commission Proposes

The current pensionable age is set to reach 67 in the early 2030s, a figure locked in roughly 2 decades ago.

The commission recommends linking it to rising life expectancy from that point, with increases each decade reaching approximately 70 by the early 2090s.

The plan also calls for scrapping the scheme that allows workers with 45 years of contributions to retire at 63 without a pension reduction.

On funding, the commission proposes a new capital pillar within the statutory system: an additional 2% contribution from gross wages, split between employers and employees, and invested through a state-managed fund.

Compulsory pension contributions would be extended to civil servants and self-employed workers.

Merz's Political Pressure and Coalition Calculus

Merz has been in office for just over a year and is struggling in the polls, beset by internal tensions within the coalition between his conservative CDU/CSU bloc and junior partner, the center-left Social Democrats (SPD).

The SPD ultimately backed the recommendations. Labor Minister Baerbel Bas said she was "very confident" the reforms would pass parliament.

Merz framed the package as non-negotiable: "All elements of this reform package must now be implemented swiftly," he said, adding that "failure is not an option."

The government hopes to pass the legislation before the summer parliamentary recess next month.

Germany's population fell in 2025 for the first time since 2020, dropping by approximately 110,000 to 83.5 million as births declined and net migration slowed sharply.