German government advisory body proposes raising retirement age to 73 by 2060– rmx.news
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Germany’s pension system should gradually raise the retirement age to 73 by 2060, according to a report by the Economics Ministry’s new scientific advisory board.
The panel of economists warns that without significant reform, the system will become unsustainable as productivity stagnates and the population continues to age.
The report, presented on Monday and cited by Bild, concludes that demographic realities and low economic growth leave no alternative but to extend working lives. It was prepared by economists Justus Haucap of the University of Düsseldorf, Stefan Kolev of the Ludwig Erhard Forum, Volker Wieland of the Institute for Monetary and Financial Stability in Frankfurt, and Veronica Grimm of Nuremberg University of Technology. All four are known for advocating free-market solutions and limited government intervention.
“The time for reforms is becoming increasingly urgent,” the authors wrote. “Economic output has been stagnating for years, while comparable economies are growing significantly more dynamically.” The report attributes this to weak productivity growth and demographic decline, arguing that Germany must adjust its retirement policies to reflect rising life expectancy.