The Christian Democratic Union’s (CDU) influential Economic Council is intensifying calls for a significant postponement of Germany’s retirement age, advocating for a trajectory extending beyond the current statutory age of 67. In statements released to the Funke-Mediengruppe newspapers, Wolfgang Steiger, the Council’s Secretary General, argued that demographic shifts and the mounting strain on the pay-as-you-go pension system necessitate a fundamental modernization of Germany’s retirement infrastructure to ensure its long-term viability.
Steiger’s remarks come amidst ongoing debates surrounding pension reform, with Federal Labor Minister Bärbel Bas (SPD) previously suggesting Scandinavian and Dutch models as potential guiding principles. The CDU’s Economic Council’s analysis, also reported by Funke-Mediengruppe, highlights specific examples. Sweden is reportedly considering raising the retirement age to 70, while Denmark is implementing a phased increase from 67 to 70 by 2040. The Netherlands’ plan to gradually increase the retirement age to 71 by 2067 is specifically lauded as a “exemplary” approach.
The Council’s endorsement of these international benchmarks represents a departure from some SPD policies, potentially setting the stage for political friction. While Bas has indicated openness to reform, these proposals from the CDU’s Economic Council represent a considerably more assertive stance. Critics argue that such sweeping increases place a disproportionate burden on lower-income workers and those in physically demanding professions, who may struggle to remain employed for extended periods.
Beyond merely raising the retirement age, Steiger’s comments also signaled support for the establishment of a capital stock for retirement provision, alongside encouraging greater participation from the retiree generation in mitigating the financial challenges stemming from Germany’s aging population. This multi-faceted approach underscores the depth of concern within the CDU regarding the sustainability of the current pension system and the potential consequences of inaction. The proposed reforms, while framed as necessary for long-term stability, are likely to spark further debate and potentially significant resistance as the German government navigates the politically sensitive issue of pension reform.