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Germany's pension reform debate heats up as retirement age divides politicians

A government commission races to fix Germany's strained pension system by midyear. Will workers pay the price—or can fairness win?

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The image shows a blue background with a building in the center and text that reads "Under Bidenomics, the unemployment rate has stayed below 4% for 21 months in a row. That's the longest stretch in over 50 years."

Retirement age depending on job? Özdemir advocates flexible retirement age - Germany's pension reform debate heats up as retirement age divides politicians

There is broad consensus that Germany's pension system needs reform—but the question of how to do it is currently under review by a government commission. Green Party co-leader Cem Özdemir has now put forward his own proposal.

In an interview with Handelsblatt, Özdemir called for a flexible retirement age, arguing that rigid thresholds are "no longer fit for the times." Instead, he suggested tailoring the start of pension payments to an individual's profession and years of contributions.

"There's this assumption that the country is made up entirely of roofers," he said. "Take my own line of work: Winfried Kretschmann [Baden-Württemberg's long-serving Green minister-president] proves that many people can—and want to—work longer." Özdemir rejected a blanket increase in the retirement age, which is currently being phased up to 67.

Pension Commission to Present Reform Proposals

The federal government has tasked a special commission with submitting recommendations for a comprehensive overhaul of the pension system by midyear. The goal is to ensure the long-term stability of pensions while preventing excessive burdens on contributors and taxpayers—especially as the baby-boom generation begins retiring in large numbers.

Özdemir's rival in Baden-Württemberg's March 8 state election, CDU lead candidate Manuel Hagel, recently told Handelsblatt that he considers a retirement age of 70 "inevitable." "Given rising life expectancy, we will eventually have to work until 70 or beyond," Hagel said, clarifying that he was not referring to those nearing retirement now. "I'm talking about my generation—or my three young children's. No one seriously expects them to retire at 67."

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