BERLIN, June 23, 2026 (BSS/AFP) - Germany will raise its retirement age 
gradually beyond 67, abolish early retirement and expand compulsory pension 
contributions under a set of new recommendations backed by Chancellor 
Friedrich Merz on Tuesday.

Germany, like many industrialised economies, is struggling with an ageing 
population and last year appointed an expert commission to come up with 
suggested reforms to its pension system.

Presenting its findings on Tuesday, the commission said the retirement age 
should be linked to life expectancy and gradually raised beyond 67 now.

It recommended abolishing a scheme that allows people to retire early at 63, 
and expanding compulsory pension contributions to include civil servants and 
self-employed workers.

"All elements of this reform package... must now be implemented swiftly," 
Merz told a press conference, adding that "we cannot afford to remove or 
reject individual measures".

Merz added that the proposals aim to meet "two goals: pensions remain secure, 
and the burdens are distributed fairly across all segments of society and 
across all generations".

Opposition parties and unions have voiced criticism of some of the proposals, 
which had previously been published in German media.

The left-wing party Die Linke said that under the changes people would be 
"working even longer, working even more".

The trade union Verdi said the proposal to scrap the early retirement scheme 
showed "a total disregard for the lifetime achievements of the people 
concerned".

The proposals must still be debated and voted on in parliament before 
becoming law.

In office for just over a year, Merz has struggled to deliver on his promises 
of sweeping reforms and a revival of Germany's stagnant economy.

Tensions have brewed between Merz's conservative CDU/CSU bloc, which has 
pushed for tougher welfare cuts, and their junior coalition partners, the 
centre-left Social Democrats (SPD).

However, the SPD on Tuesday also said it supported the pension 
recommendations, with Labour Minister Baerbel Bas declaring that she was 
"very confident" the reforms will be supported in parliament.

Around 19 million people in Germany were aged 65 or older -- about 23 percent 
of the total population -- in 2024, the latest year for which statistics are 
available.

In 1991, only 15 percent of the population was aged over 65.