Tuesday, 23 June 2026
Peter Haan, pension expert and Head of the Public Economics Department at the German Institute for Economic Research (DIW Berlin), has welcomed key recommendations reportedly put forward by the federal government’s pension commission, describing them as a positive step toward addressing long-term challenges facing Germany’s pension system.
According to Haan, demographic ageing continues to place increasing pressure on the country’s statutory pension scheme, requiring measures that both secure long-term financing and maintain adequate retirement incomes.
Among the proposals highlighted by the commission is the planned abolition of the pension provision for particularly long-serving contributors, commonly known as the “retirement at 63” scheme. Haan noted that previous DIW Berlin estimates suggest the measure could reduce pension system expenditure by around €10 billion annually.
He also expressed support for a gradual increase in the statutory retirement age beyond 67 years. Under the commission’s reported recommendations, any future increase would be introduced over a long period and linked to developments in life expectancy rather than implemented immediately.
At the same time, Haan stressed the importance of maintaining flexibility within the system. The proposed framework would continue to allow earlier retirement in certain cases through individual health assessments, particularly for workers in physically demanding occupations.
The commission has also reportedly recommended extending participation in the statutory pension system to additional groups, including the self-employed, senior executives, members of parliament and civil servants. Haan said the details of such reforms would be critical to their success.
Another element under discussion is the introduction of a supplementary funded pension component modelled on the Swedish system. While acknowledging that such a mechanism could strengthen retirement provision over the long term, Haan noted that it would likely require higher contributions from both employees and employers.
According to Haan, the political challenge now lies in translating the commission’s recommendations into legislation while maintaining public support. He emphasized that reforms should ensure adequate protection for lower-income workers and individuals employed in physically demanding jobs to prevent increased poverty risks in retirement.
He concluded that a broad political and social consensus could be achieved if the reforms are implemented in a way that balances financial sustainability with social fairness.
Source: DIW Berlin
