Retirement shock for Germany: Experts propose raising pension age to 73
A group of top economic advisers to the German government has caused a stir by recommending a dramatic rise in the retirement age — all the way to 73.
The proposal, presented on Monday in Berlin, is part of a new expert report aimed at “securing the sustainability” of the German pension system, which is under increasing strain from demographic change and weak economic growth.
The council — composed of leading economists including Prof. Justus Haucap (University of Düsseldorf), Prof. Stefan Kolev (Ludwig Erhard Forum), Prof. Volker Wieland (IMFS Frankfurt), and Prof. Veronika Grimm (Technical University of Nuremberg) — argues that “longer working lives” are inevitable if Germany wants to maintain its welfare standards without overburdening future generations.
From 67 to 73: a gradual shift
According to the proposal, the statutory retirement age should rise step by step to 73 years by 2060.
The economists suggest linking future increases directly to life expectancy — a model already in place in countries such as Denmark.
The idea is not new: last week, CDU politician and former federal minister Katherina Reiche sparked public debate by advocating retirement at 70.
The new expert panel goes further, warning that reforms can no longer be postponed if the system is to avoid collapse.
Economic stagnation and demographic pressure
Germany’s economic outlook, the report states, has “been stagnating for years,” while comparable economies have grown much faster.
The authors cite two key structural problems: low productivity growth and the ageing population.
As the workforce shrinks, the balance between contributors and retirees continues to deteriorate — meaning fewer workers will have to finance more pensions.
“We will have to work more if we want to preserve our social system,” the study concludes.
The authors urge the government to adapt the pension system to demographic realities, arguing that doing nothing would inevitably lead to higher taxes, deeper cuts, or both.
Denmark as a model
The economists point to Denmark as a successful precedent. There, the retirement age has been tied to life expectancy since 2006, when it stood at 65. By 2040, it will rise to 70 — a reform that received broad parliamentary approval in May 2025.
The rule applies to all Danes born after December 31, 1970. Despite Denmark’s relatively favorable demographic profile compared to Germany, the system has remained politically stable under governments of varying colors, including the current Social Democratic administration.
If Germany were to follow the same logic, the retirement age could indeed reach 73 by 2060, assuming life expectancy continues to increase as projected.
The economists emphasize that delaying reform only makes the adjustment harder later — a message likely to spark intense political debate in the months ahead.
