German Minister for Economic Affairs, Katherina Reiche of the Christian Democratic Union (CDU), has urged citizens to consider extending their working lives. In an interview with the Frankfurter Allgemeine Zeitung, Reiche highlighted the need for adjustments to Germany’s working patterns in light of demographic shifts and increasing life expectancy.
“It cannot be sustainable in the long term for us to work only two-thirds of our adult lives and spend a third in retirement” she stated. Reiche emphasized that increasing working hours and discouraging early retirement are becoming increasingly necessary.
She pointed to a comparative disadvantage in working hours, noting that companies with operations in both Germany and the United States have reported German employees working an average of 1,340 hours annually, compared to approximately 1,800 hours for their American counterparts.
While acknowledging the importance of addressing the needs of physically demanding professions like construction and caregiving, Reiche stressed that many individuals desire and are capable of continuing to work beyond the traditional retirement age. “For many people, happiness does not solely consist of retiring as early as possible, but of being able to continue contributing their experience” she added.
Regarding proposed legislative revisions regarding pension reform and collective bargaining agreements introduced by Federal Minister of Labour, Bärbel Bas of the Social Democratic Party (SPD), Reiche clarified that these proposals are still under consideration within the government. “We have voiced our criticism internally and secured changes” she explained.
Reiche also warned that Germany’s pension, healthcare and long-term care insurance systems are nearing their limits. She voiced concerns that the combined burden of payroll taxes, levies and contributions are impacting the competitiveness of the labor market. “The social security systems are overstretched” she cautioned.