Overview
- The federal government and its Rentenkommission agreed on 33 recommendations and announced on July 2 that they should be turned into law by the end of 2026.
- The plan ties statutory retirement ages to rising life expectancy so younger cohorts could face retirement near age 70, and it abolishes the Rente mit 63 and the penalty‑free 45‑year rule.
- The package ends the fixed 48 percent replacement floor, reintroduces a sustainability factor that reduces linkage to wages, and directs up to 2 percent of contributions into a global Kapitalstockrente.
- Unions, health insurers and researchers warn many workers in physically and mentally demanding jobs cannot work longer without targeted protections, and the DGB and the Greens propose alternative measures such as an Überlastungsschutzrente.
- The reform broadens who must pay into the system by bringing new self‑employed people into contributions, shifts some pension risk to capital markets, and aims to contain long‑term public costs in the face of demographic ageing.