Young Union Leader Advocates for Retirement Age Increase to 70

Sun 24th Aug, 2025

The sustainability of social security systems has become a prominent issue in the current political climate, particularly for the coalition government led by Chancellor Friedrich Merz. As the nation grapples with maintaining the financial viability of these systems, Pascal Reddig, the head of the Young Union faction within the Bundestag, proposes significant reforms to the German pension system.

At just 30 years old, Reddig is calling for a fundamental overhaul of how pensions are managed, advocating for an increase in the retirement age to 70 and a reduction in the rate of pension increases. He argues that reforms are necessary to ensure that the financial burdens of the pension system are distributed more equitably among generations, rather than disproportionately affecting the younger population.

Reddig's remarks come as a response to the establishment of a commission by the ruling coalition, tasked with developing reform plans for the pension system by 2026. He emphasizes the urgency of these reforms, stating that the current model, which allows for early retirement at 63, should be effectively abolished. This proposal reflects a growing consensus among economists and pension experts that an adjustment to the retirement age is essential.

In discussing the rationale behind his proposal, Reddig stresses that it is crucial for society to adapt to increasing life expectancy. He suggests that a gradual increase in the retirement age, linked to life expectancy metrics, could help create a sustainable pension system. Furthermore, he calls for measures to make early retirement less appealing and urges the discontinuation of the current provisions that allow for retirement at 63, particularly for those in professions that could feasibly continue working longer.

Reddig also suggests that future pension adjustments should be based on inflation rather than wage growth, aiming to reduce the financial strain on the pension system. He points out that with rising life expectancy, the duration of pension payouts has increased significantly, leading to higher costs for the pension insurance system.

According to recent statistics, approximately 22.3 million individuals in Germany received benefits from various pension schemes in 2024, marking a 0.75% increase from the previous year. The total amount distributed reached around 403 billion euros, reflecting a 5.7% rise compared to the previous year.

In the backdrop of these developments, the federal cabinet has initiated two key steps regarding pensions: securing the pension level at 48% until 2031 and enhancing benefits for mothers of children born before 1992. Both initiatives are to be funded through significant allocations from the federal budget.

Economists have echoed Reddig's concerns, with calls for a 'new generational contract' and discussions surrounding the necessity of a mandatory social year for retirees. This concept has faced considerable opposition, highlighting the contentious nature of pension reform in Germany.

As the debate unfolds, it is clear that significant changes to the pension system are not only on the horizon but are increasingly seen as essential for the economic stability of future generations. Reddig's proposals represent a pivotal moment in the ongoing dialogue about how Germany can maintain a fair and effective social security system amidst changing demographic realities.


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