Germany is preparing for a major pension reform. On June 23, a specially convened commission of experts and politicians presented a 33-point plan for reform, according to DW.
Currently, Germany is gradually raising the retirement age to 67 (by the 2030s). The new proposals call for linking the retirement age to increases in life expectancy: by 2041, it will reach 67.5 years, and by the 2090s, it could be around 70 years.
There is also discussion of the possibility of eliminating the right to early retirement without a reduction in benefits for those with 45 years of service.
It is proposed to eliminate special privileges and require civil servants and the self-employed, among others, to make pension contributions. A phased introduction of an additional pension contribution equal to 2% of salary, to be directed toward investment funds and other stock market instruments, is also being considered.
Who else has similar plans?
Apart from Germany, most EU countries are systematically raising the retirement age due to rising life expectancy and budget deficits. The main trend in Europe is to automatically link the retirement age to demographic indicators.
The leading countries in raising the retirement age in the European Union are:
Denmark: The country’s parliament has already passed a law under which the retirement age will increase to 70 by 2040. It is currently 67, but will rise to 68 in 2030 and to 69 in 2035. This will be the highest figure in the EU.
Italy: The current standard retirement age is already 67. Due to a strict life expectancy-based formula, authorities predict it will continue to rise in the coming years. By 2060, it could increase by more than 5 years.
Estonia and Slovakia: These countries have also adopted an automatic adjustment mechanism. It is expected that for those just entering the labor market, the future retirement age will be 69 years.
The Netherlands: The retirement age is calculated mathematically each year. It is currently 67 years, but by 2030 it will automatically shift to 67 years and 3 months based on current data from the statistics ministry.
Most major EU economies are currently in the process of reaching the 67-year threshold.
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