According to the German Council of Economic Experts, the retirement age should be raise to 73 to keep the country’s social security system from collapsing.
It suggested a gradual rise in the retirement age from 67 to 73 by 2060.
This is to counter the stagnant economy, which has low productivity growth, deindustrialisation and structural demographic problems Germany is struggling with, meaning people have to work longer to produce the same economic output, the report states.
“We will have to work harder if we want to preserve the scope of social insurance without leaving even more burdens on future generations at the same time. The retirement age must be linked to life expectancy,” the study says.
According to the study, the proportion of 67-year-olds and older will increase by about a third by 2030.
Currently, fewer than three working-age individuals support each pensioner. To preserve this balance, the study suggests raising the retirement age to 69 by 2030, 71 by 2035, and maintaining it at 73 from 2041 onward.
It noted that in neighbouring Denmark, a similar decision was already made, despite the fact that Denmark had healthier birth statistics.
There, the parliament recently approved to raise the retirement age to 70 by 2040 for all Danish citizens born after 1970.
Denmark became the first country in the EU to raise its retirement age to 70, after its parliament passed the measure on May 22. https://t.co/O8ruXP6Y24
— Brussels Signal (@brusselssignal) May 26, 2025
Next to raising the pension age, the economic experts also called for “growth-oriented structural change” and to achieve technological leadership in important industries such as biotechnology, medical technology and nuclear technology.
Regulatory barriers, though, are putting obstacles in the way of companies, they found.
The German Council of Economic Experts is an independent advisory body established by law in 1963 to provide economic policy advice to the German Government and the public.
While it works closely with the government, it operates autonomously and is not structurally subordinate to any ministry.
Its members, often leading professors in their fields, are appointed by the president on the government’s proposal and it is tasked with producing objective economic analyses, such as annual reports and special reports, to inform policy decisions.
Regarding the raising of the retirement age, the paper came from a newly established scientific advisory circle convened by economy minister Katherina Reiche.
It was presented on October 6 as part of broader growth agenda recommendations.
Over the years, the German Government has established multiple commissions and advisory bodies to address the future of the pension system, primarily through economic ministries.
These efforts stem from ongoing challenges such as demographic ageing (low birth rates, rising life expectancy), a shrinking workforce relative to retirees, increasing contribution rates and the need to sustain the pay-as-you-go model, where current workers fund current pensions for the retired.
