The pension commission has presented its 33 proposals on old-age provision. The recommendations will be handed over to Chancellor Friedrich Merz and Labor Minister Bärbel Bas on Tuesday.
The commission recommends a net replacement rate of at least 70 percent as a target figure. Further proposals include linking the retirement age to life expectancy, abolishing early retirement without deductions after 45 years known as „Rente mit 63“ with transition rules, and introducing a capital-funded pillar with one percent of gross salary.
Labor Minister Bärbel Bas described the plans as a „Gesamtkunstwerk“. She announced political discussions and protection of trust for those affected. Economist Veronika Grimm criticized that previous government decisions had moved the pension insurance in the wrong direction.
Chancellor Friedrich Merz sees the reform as a necessity due to demographics and mathematics. The proposals are available to Handelsblatt and are to be officially handed over on Tuesday.
