The Christian Democratic Union’s (CDU) influential Economic Council is escalating the debate surrounding Germany’s aging pension system, advocating for a significant postponement of retirement ages beyond the current statutory limit of 67. In a statement released to Funke-Mediengruppe newspapers, Wolfgang Steiger, the council’s Secretary General, argued that a “consistent increase of the retirement age, even beyond 67, is necessary” to safeguard the system’s long-term viability.
The push comes as Federal Labour Minister Bärbel Bas (SPD) explores potential reform models, referencing nations like Sweden, Denmark and the Netherlands. However, the CDU’s Economic Council views these nations’ approaches – particularly the Netherlands’ ambitious plan to raise the retirement age to 71 by 2067 – as exemplars deserving of closer consideration. Sweden is reportedly planning a rise to 70, while Denmark proposes a phased increase culminating in a retirement age of 70 by 2040.
Steiger emphasized the urgency of the situation, citing ongoing demographic shifts and the intensifying strain on Germany’s pay-as-you-go pension system. He positioned the proposed reforms not as austerity measures, but as a “modernization” crucial for ensuring the “future-proofing” of the nation’s retirement infrastructure. The Council’s analysis, shared through Funke-Mediengruppe, suggests that sustainable solutions require a combination of increased retirement ages, building capital stocks for pension provision and a re-evaluation of the burden-sharing relationship between generations.
The CDU’s stance represents a significant divergence from the SPD’s approach and injects a potentially volatile political dimension into the pension reform debate. Critics argue that such substantial increases in retirement ages disproportionately affect lower-income workers and those in physically demanding professions, potentially exacerbating existing inequalities. Furthermore, the reliance on models from countries with differing economic and social structures raises questions about the applicability and potential repercussions of such policies within the German context. The debate underscores a growing ideological divide within Germany on how best to address the long-term sustainability of its social welfare systems.
