Merz backs plans to raise Germany’s retirement age to 70 in pension changes

Germany will gradually raise its retirement age to about 70 by the early 2090s under recommendations backed by the chancellor, Friedrich Merz , as a means of future-proofing the pension system for an ageing population. Presenting its findings on Tuesday, an expert commission set up to explore reforms to the pension system said retirement age should be linked to rising life expectancy and early retirement should be scrapped. “No citizen needs to worry,” said Merz, as he said the measures would prevent the collapse of the creaking pension system and strengthen the social contract between generations. Young people, he argued, would be given a “reason for optimism” by the measures, which would “lift a tremendous burden” from their shoulders. The commission of experts sat for long daily sessions from January until its 33-point plan was presented on Tuesday. Among its key recommendations are for the obligatory contributions made by workers and employers to be invested in the stock market in order to increase and safeguard the fund’s value for future generations. It also proposed expanding compulsory pension contributions to include civil servants and self-employed workers. The current pensionable age for anyone retiring in the early 2030s in Germany is 67, a figure set about two decades ago. The panel said this should be gradually increased in line with life expectancy, rising to about 70 by the early 2090s. …