CDU politician Friedrich Merz asserts the need to abolish the concept of “early retirement at age 63.” During a speech in Berlin hosted by “Handelsblatt” and “Wirtschaftswoche” on Wednesday, Merz stated that ending the tax-free early retirement scheme is actually a contribution to social justice. He argued that retiring early without deductions while still healthy is neither socially sound nor financially sustainable for the pension insurance system or the national economy.
Merz announced that he intends for the government to swiftly pass a pension reform. He expressed confidence that the reform would go through the cabinet by Christmas. While acknowledging that this would lead to difficult debates in parliament afterward, he plans to have the pension reform debated and approved by the Bundestag and Bundesrat at the beginning of the new year, with the reform expected to be finalized by spring 2027.
The Union and the SPD are also set to discuss the reform in the coalition committee on Wednesday evening. Merz views these steps as critical and long overdue. In his opinion, passing the reforms will be a victory, leading to a higher pension level in the medium term coupled with declining contribution rates.
