Germany Moves to Raise Retirement Age to 70... Takes Action Amid Aging Population

As Part of Pension Reform... Gradual Increase of Retirement Age from 67 to 70 Proposed
Gradual Raise Recommended by Early 2090s... Opposition From Labor Unions

The German government has decided to pursue a plan to gradually raise the retirement age from the current 67 to 70 in response to an aging population.

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According to Yonhap News, citing the Guardian and other sources on June 24, the German government plans to extend the retirement age to 70 by the early 2090s as part of a pension reform plan.

Germany, which is considered one of the advanced countries experiencing rapid aging, formed a committee of experts last year to devise a pension reform plan. This was in response to a situation where, due to aging and low birth rates, the number of workers contributing to the pension system is decreasing while the life expectancy of retirees receiving pensions is increasing.

In a report released on June 23 (local time), the expert committee recommended that the retirement age for pension eligibility be gradually increased to 70 by the early 2090s, linking it to life expectancy.

German Chancellor Friedrich Merz stressed at a press conference that "this reform is aimed at ensuring the stability of the pension system and distributing the pension burden fairly across generations," emphasizing the need for swift action.

The expert committee also proposed that, to secure pension funding for future generations, a portion of the mandatory pension contributions paid by employees and employers be invested in the stock market.

The recommendations also included expanding the mandatory pension contribution requirement to include civil servants and the self-employed, as well as abolishing the early retirement system at age 63.

Friedrich Merz, German Chancellor. Photo by Yonhap News

23% of Population Over 65... Opposition From Labor Unions and Others

According to the latest statistics, as of 2024, there are approximately 19 million people aged 65 or older, accounting for 23% of the total population. This is a significant increase compared to 1991, when those aged 65 or older made up 15% of the population. The average life expectancy in Germany is 78.5 years for men and 83.2 years for women.

Although the German government is calling for the rapid implementation of the reform plan, there is resistance from labor unions and others, who argue that it essentially means "work longer and work more," so the process is expected to be contentious until it is actually enacted. The reform plan will require parliamentary discussion and a vote before it can be implemented.

This content was produced with the assistance of AI translation services.