Germany’s aging population is placing significant pressure on its pension system, prompting Economy Minister Katherina Reiche to propose raising the retirement age. The government’s decision comes as the system faces the risk of collapse due to an increasing number of retirees and a shrinking workforce.
The proposal has sparked debate among political parties and citizens, with some arguing that it is necessary to ensure the long-term sustainability of the pension system, while others express concern about the potential impact on workers’ livelihoods. Reiche has emphasized the need for structural reform to address the financial challenges facing the system.
Experts warn that failing to implement such measures could lead to severe fiscal consequences for the country. The government is now considering various options to ensure the pension system remains viable in the long term, including potential adjustments to retirement benefits and contributions.