German coalition leaders pledge rapid pension reform overhaul
German coalition leaders have pledged to quickly implement 33 proposals for pension reform, including a mandatory capital-funded pension scheme and raising the retirement age to 70 by 2092. The reform aims to show the government's ability to govern as support for the far-right AfD party grows.
Leaders of Germany's governing coalition have promised to swiftly implement a major pension reform package comprising 33 proposals. Key measures include a mandatory capital-funded pension scheme modeled on the Swedish system and linking the retirement age to average life expectancy. Under the plan, the retirement age would rise by about six months each decade starting in 2032, reaching 70 years at the earliest by 2092.
Chancellor Friedrich Merz, who leads the conservative-led coalition, emphasized that all reforms would be enacted without delay. This is one of several urgent, long-overdue changes spanning tax policy, pensions, and long-term care insurance that the coalition has vowed to finalize in coming weeks. The goal is to demonstrate that the unpopular and often fractious coalition remains capable of governing as support for the far-right opposition party Alternative for Germany (AfD) continues to grow.
Bärbel Bas, a leader of the center-left Social Democratic Party (SPD) and labor minister, also backed swift implementation of the commission's recommendations. She argued that the proposals form a comprehensive package and cannot be cherry-picked for ideological reasons. "I want to implement this package," Bas said, adding that securing support from parliamentary groups within their own ranks will be necessary, as the reform ultimately requires approval by the German Bundestag.
