German Pension Commission Splits Over Proposal to Scrap Early Retirement and Raise Age to 67
20.06.2026 - 09:44:01 | boerse-global.de
A government-appointed expert panel has delivered a deeply divided set of recommendations for shoring up Germany’s pension system, with its most contentious proposals—ending the popular “pension at 63” and requiring people to work longer—already sparking fierce opposition from unions and social associations.
The commission, chaired by former Federal Employment Agency head Frank-Jürgen Weise and labour-law expert Constanze Janda, handed its final report to Chancellor Friedrich Merz and Labour Minister Bärbel Bas. Rather than a unified plan, the document contains around 30 recommendations alongside several dissenting minority opinions.
Longer working lives at the core
A central thrust of the report is that older workers must stay in employment beyond current expectations. The committee argues that the existing phased increase of the standard retirement age to 67 by 2031 is insufficient. Today the average age at which Germans actually retire is just under 65.
Andrea Nahles, who heads the Federal Employment Agency and served on the panel, pointed to persistent barriers. While the employment rate among older people has risen, she noted, jobless individuals over 55 still face significantly worse chances of being rehired. She called on employers to undergo a “change of mindset.”
Deep disagreement over the “pension at 63”
No single issue proved more divisive than the proposed abolition of the penalty-free pension available after 45 contribution years—commonly known as “Rente mit 63.” Critics on the commission argued that the scheme is disproportionately used by well-paid skilled workers who then exit the labour market early, worsening the shortage of experienced personnel.
Other measures debated in the report include:
- Linking the retirement age to changes in life expectancy
- Stabilising the pension level at roughly 48 percent of average earnings
- Gradually raising contribution rates from 18.6 percent to 19.9 percent from 2028 onward
- Extending mandatory insurance coverage to mini-jobs
- Introducing compulsory occupational pension schemes
Unions and social organisations such as Verdi, the VdK and the SoVD have already rejected any increase in the retirement age. They describe the proposals as disguised pension cuts and warn they will deepen social inequality.
Coalition faces tricky negotiations
Responsibility for turning the report into legislation now rests with the black-green coalition. Labour Minister Bas indicated that a swift one-to-one implementation is most likely when the commission’s members have reached broad consensus. Because the final report includes dissenting votes, however, intensive parliamentary debates are expected.
Chancellor Merz and Minister Bas aim to assemble a comprehensive reform package by the summer recess in July. Alongside pension security, the package is slated to include labour-market adjustments, income-tax changes and bureaucratic simplification. The overarching goal is to ensure the long-term financial viability of the social-security system without placing an excessive burden on younger generations. An official presentation of the findings is scheduled immediately after the handover to the Chancellery.
