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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Photorealistic depiction of pension commission delivering 33 recommendations to Chancellor Merz and Minister Bas in a German government office.
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Pension commission delivers 33 recommendations to Merz and Bas

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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 pension commission plans to hand over 30 reform proposals on Tuesday to Chancellor Friedrich Merz and Labor Minister Bärbel Bas.

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German Chancellor Friedrich Merz urged the SPD to demonstrate greater willingness for reforms. In a speech to the CDU Wirtschaftsrat in Berlin, he warned of limits to his patience. He criticized the SPD for 'dreaming' of democratic socialism.

The German government's pension commission will present its proposals for reforming old-age security on June 23. The original date had been June 29.

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