"The German government, a coalition of the conservative Christian Democrats (CDU), its Bavarian sister party, the Christian Social Union (CSU) and the center-left Social Democrats (SPD), will have to deal with difficult domestic policy issues in 2026. 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."
"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."
Germany's coalition government will confront difficult domestic policy issues in 2026. A reform package for the state pension system passed the Bundestag; the pension level will remain stable until 2031. A commission will develop fundamental reforms and submit proposals by mid-2026. Financial security in old age remains a central concern as lifespans increase and the elderly population grows. The 2026 budget includes a 128 billion euro subsidy to offset pension losses, about a quarter of total spending. Considered measures include raising retirement age and linking pension size to years worked. A new process will mail questionnaires to 18-year-olds, requiring men to respond and inviting voluntary responses from women about personal details, education, competences, and willingness to perform military service.
Read at www.dw.com
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