Merz proposes pensions based on lifetime work amid ongoing reform debate

Chancellor Friedrich Merz (CDU) called at a CDU campaign event in Ravensburg for pension amounts to be tied to working years rather than fixed retirement age, building on earlier proposals like economist Jens Südekum's. He noted SPD support, urged private savings, and pushed for social reforms ahead of the Baden-Württemberg election.

Chancellor Friedrich Merz (CDU) spoke on Friday evening at a CDU Baden-Württemberg campaign event in Ravensburg about pension reform, reviving debate on measuring benefits by lifetime working years rather than a fixed retirement age—a concept previously floated by economist Jens Südekum and met with divided public opinion.

"It matters less whether someone retires at 61, 65, or 68," Merz said. "It matters when someone started working and how long they worked."

Merz emphasized shared ground with coalition partner SPD, quoting them as open to lifetime work over abstract age metrics. The government has already introduced the 'active pension,' allowing up to 2,000 euros tax-free earnings post-retirement for continued work, softening rigid age limits.

He downplayed fixation on pension stability levels like 48 or 49 percent, prioritizing early private provision. The coalition agreement bolsters occupational and private pensions alongside statutory ones. Merz advised youth to save 50 euros monthly for substantial retirement funds.

Calling for sweeping social reforms this year—before the legislative period's second half from 2027—Merz reiterated demands for more work: "With work-life balance and a four-day week, we will not maintain prosperity." The event preceded Sunday's Baden-Württemberg state election.

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German Chancellor Friedrich Merz addressing bankers in Berlin, urging reforms in energy, pensions, and health insurance.
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Friedrich Merz urges SPD toward more reforms

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Chancellor Friedrich Merz has called on coalition partner SPD to lift blockades on reform projects. At an event of the German Banks Association in Berlin, he announced serious talks for the evening. Energy policy, pension reform, and statutory health insurance are in focus.

Economists criticize the SPD's proposal to tie retirement age to contribution years, warning of disadvantages for academics and the erosion of solidarity-based pensions. Amid ongoing reform debates sparked by Jens Südekum's idea and mixed public opinion, coalition frictions intensify ahead of the pension commission's report.

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Several CDU politicians have distanced themselves from Chancellor Friedrich Merz’s comments on statutory pensions. Merz described pensions as at most a “basic security” for old age. Saxony-Anhalt’s premier Sven Schulze particularly urges consideration of the East German situation.”

German Chancellor Friedrich Merz emphasized the stability of his black-red coalition during an ARD interview with Caren Miosga on Sunday evening (May 3, 2026). He urged the SPD to show compromise and ruled out alternatives like tolerance by the AfD. Merz openly addressed discontent within the Union and the limits of his patience.

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On Labour Day, German unions announced strong resistance to planned cuts in pensions, healthcare, and social benefits. DGB leader Yasmin Fahimi warned of societal conflicts. Over 366,000 people attended rallies.

The German trade union confederation has called for mandatory company pensions for all employees as part of the planned pension reform. DGB chair Yasmin Fahimi advocated for at least partial employer funding.

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Manuela Schwesig, minister president of Mecklenburg-Vorpommern, has criticized federal health minister Nina Warken's plans for nursing care reform. She sees them as shifting problems onto the weakest. DAK chief Andreas Storm also called for a reform moratorium.

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