Germans could be forced to work until the age of 73. Chancellor Friedrich Merz has announced his intention to increase the retirement age to cope with the aging population and the country’s economic stagnation.
His statement comes after a group of experts recommended raising the retirement age to 73 by 2060, compared to the current age of 65.
The proposal, put forth by the Scientific Advisory Group (SAG) of the German Ministry of Finance, would impose one of the highest retirement ages in Europe, according to The Telegraph.
If implemented, Germany's retirement age would surpass that of Denmark, which is set to increase to 70 by 2040.
Other European nations, including France, Italy, and the United Kingdom, are also reviewing their retirement ages in response to an aging population.
An excerpt from a report, disclosed by Bild newspaper this week, states that the German economy has been "stagnating for years," unlike "comparable economies that are growing more dynamically."
Merz says Germans don't work enough
The news will be a tough blow for German workers, many of whom already feel impacted by Merz's recent accusations that they don't work enough.
German business leaders have warned that the country's once-strong economy is in a "crisis," citing rising energy costs, the decline of the auto industry - once the nation's pride - and the highest unemployment figures in the last decade.
"We need to work more, and above all, more efficiently in this country. With a four-day workweek and a balance between professional and personal life, we will not be able to maintain this country's prosperity," Merz said in May.
The remark has sparked outrage in Germany, but some economists have acknowledged that Merz may be right.
"It's not surprising that his comments have sparked a national debate. The reality is that, in 2023, the average German worker only worked 1,343 hours per year. This is the lowest rate among all 38 OECD member countries, where the average is 1,746 hours per year," said Moritz Kraemer, chief economist at the German bank LBBW.
Recent statistics, however, show that many Germans already work well beyond the standard retirement age of 67 due to low pensions.
Government data from July 2024 showed that the number of Germans working past the age of 67 has increased from 660,000 to 1.05 million in the last 10 years.