"After grueling debates, the government passed its reform package for the state pension system through the Bundestag in early December. The pension level is to remain stable until 2031, a commission will develop fundamental reforms to the system and submit proposals by mid-2026. Financial security in old age, in a society where people are living longer and the number of elderly people is rising, will remain a key concern for the country and its government."
"In the 2026 budget, the government subsidy to compensate for pension losses amounts to a hefty 128 billion ($150 billion) around a quarter of the total budget. The pension commission is under pressure to develop truly practical proposals on an extremely complex issue. Raising the retirement age from 67 is on the cards. But some, like economics professor Jens Sudekum, suggest doing away with a fixed retirement age for everyone."
"Sudekum has said the size of the pension a person receives should depend solely on the number of years they have worked and paid into the system. In December, Chancellor Friedrich Merz (CDU) said the idea was "certainly worth considering," adding, "I want us to implement a comprehensive reform.""
The coalition government passed a state pension reform package and set the pension level to remain stable until 2031. A commission must develop fundamental reforms and submit proposals by mid-2026. The 2026 budget includes a government subsidy of 128 billion ($150 billion), about a quarter of the total budget, to cover pension losses. Options under consideration include raising the retirement age from 67 or removing a fixed retirement age so pensions reflect years worked. Economics professor Jens Sudekum recommends linking pension size to contribution years. Chancellor Friedrich Merz called these ideas worth considering and urged comprehensive reform. The government will also issue questionnaires to 18-year-olds about skills and willingness to serve, with men required to respond and women able to respond voluntarily, and a medical assessment included in the process.
Read at www.dw.com
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