July 2026

Germany Plans to Implement Proposed Pension Reforms by the End of 2026

The commission’s recommendations are, for now, political proposals. Concrete implementation—such as through legislative procedures—is still pending. Nevertheless, the proposed key points are notable because they may affect typical human resources and compensation structures—and because the federal government has sent a clear signal that it intends to implement all proposals. At the heart of a potential reform is the goal of placing the statutory pension system on a more stable long-term financial footing and broadening Germany’s overall retirement savings framework beyond...

Pension Income and Post-Retirement Labor Supply

By Fabian Kindermann, Carla Krolage, Sebastian Kunz, Manuel Pannier & Karoline Ströhlein This paper provides causal evidence on how pension income affects labor supply after retirement. We exploit the introduction of the German Earned Income Pension Credit (Grundrente), which permanently increased pension income for retirees with long contribution histories and comparatively low lifetime earnings. The reform generates exogenous variation in non-labor income without creating additional labor supply distortions, allowing us to isolate pure income effects. Using administrative data covering the...

German coalition agrees on sweeping reform package in key breakthrough

German Chancellor Friedrich Merz’s ruling coalition has unveiled a sweeping package of tax, labour and pension reforms aimed at reviving Europe’s largest economy and countering a surge by the far right. The “Programme for Revival and Employment” announced on Thursday includes about 10 billion euros ($11.4bn) in annual income tax relief targeted at lower and middle-income earners, taking effect from January 1, 2027. The 34 reform measures also include an overhaul of the creaking pension system, tougher rules for employees’ sick...

Germany’s ruling coalition to meet for crunch talks on reform package

The leaders of Germany's ruling coalition parties are meeting on Wednesday for what could be decisive talks on their reform package, with decisions on tax relief for low and middle incomes, labour market reforms, pensions, health care and long-term care all on the agenda. Whether decisions will be reached on Wednesday is unclear. Negotiations could also run into the night, with the coalition determined not to let itself be pressured by deadlines. A commission has already put forward proposals on pension...

June 2026

German reforms could see €400bn private pension boost

Germany’s reform of its public and occupational pension system could see more than €400bn flow into the scheme over the next decade, following recommendations made in a report published on Tuesday by the country’s pension commission. In an 80-page submission, the commission –  Alterssicherungskommission – made 33 recommendations to the government as to how to reform the country’s public and occupational pensions. If fully implemented, IPE analysis suggests the reforms could see capital inflows of more than €400bn across the pillars...

Merz backs plans to raise Germany’s retirement age to 70 in pension changes

Germany will gradually raise its retirement age to about 70 by the early 2090s under recommendations backed by the chancellor, Friedrich Merz, as a means of future-proofing the pension system for an ageing population. Presenting its findings on Tuesday, an expert commission set up to explore reforms to the pension system said retirement age should be linked to rising life expectancy and early retirement should be scrapped. “No citizen needs to worry,” said Merz, as he said the measures would prevent the collapse...

Reforms could relieve German budget by up to €60 billion, Ifo says

Germany's financial situation could be improved by up to €60 billion ($70 billion) annually ​by 2030 with a series of economic ‌reforms, calculations by the Ifo Institute showed on Tuesday. The study, commissioned by the employer-funded think tank New Social ​Free Market Initiative, shows that the government ​could generate around €54 billion through changes to pension ⁠insurance, parental allowance and subsidies. An additional €6 billion ​could be generated through growth-promoting investments at the ​federal level. “To achieve that, reform packages need to...

Germany’s 2027 pension shake-up: who wins and who loses?

Germany’s life insurance sector is facing its most significant competitive disruption in a generation, according to financial analytics firm Kidbrooke. With landmark pension reform legislation now confirmed, incumbent insurers have a narrowing window to modernise their digital infrastructure or risk being outpaced by nimbler rivals on day one of the new market. The reform centres on the Altersvorsorgedepot, a new state-subsidised private pension savings account passed by the Bundestag in March 2026 and approved by the Bundesrat on 8 May 2026,...

May 2026

Germany. GOVT reportedly mulls change to retirement age

claims it saw a draft proposal by the government to increase the age of retirement by three years Chancellor Merz has proposed that Ukraine become an 'associate' member of the European Union Politicians have been reacting to a report from German tabloid Bild that the government of Chancellor Friedrich Merz is planning to raise the age of retirement from 67 to 70 years old. According to the report, the age will be raised to 68 in the 2040s, 69 in the 2050s, before...

Hundreds of thousands of Germans take to the streets over threat of pension and benefit cuts

In Germany, 366,000 people took part in protests against social benefit cuts. Trade unions are opposing reductions in pensions and healthcare spending. Hundreds of thousands of people took to the streets for May Day demonstrations in Germany. Participants of the rallies warned the government that they are ready to fight against cuts to pensions, social benefits, and the healthcare system, UNN reports, citing DW. "Our work first, your profit second" — under this slogan, more than 400 events were held across Germany, according...