A government-appointed committee will submit on Tuesday a draft pension overhaul
backed by Chancellor Merz’s coalition that would introduce market-based savings,
tighten early-retirement rules and phase up the retirement age in line with
rising life expectancy. The proposal calls for phased supplementary
contributions equal to 2% of total wages to be managed via a public fund vehicle
and invested in capital markets. It would also remove an early-retirement route
that allowed workers with 45 years’ contributions to retire early. The reform is
one of the most divisive issues in the 13-month-old coalition and may face
implementation risks amid Conservative–Social Democrat disagreement.
