German Chancellor Friedrich Merz has outlined plans to phase out early retirement benefits after 45 years of contributions, with transitional measures to ease the shift. The move has sparked debate within the coalition, with amendments to the reform framework still on the table.

Chancellor Friedrich Merz has announced his proposal to gradually end the option of early retirement after 45 years of contributions, citing a need to eliminate incentives for retiring early in the future pension system. Speaking on a national broadcast recently, Merz emphasized that transitional measures would be necessary to ensure a smooth implementation of the reform while maintaining stability within the pension framework.

The proposed changes have reignited discussions among members of the coalition government, composed of the conservative CDU/CSU bloc and the center-left SPD. Thorsten Frei, the leader of the CDU parliamentary group, has stressed caution in adjusting the reform to ensure no unintended disruptions to the overall structure. Meanwhile, Matthias Miersch, the SPD’s parliamentary leader, highlighted the importance of empathy and dialogue in reaching a fair solution. Both leaders expressed openness to amendments during the legislative process.

Currently, the retirement age is gradually increasing, with the regular retirement age set at 66 years and four months for most. By comparison, early retirement options starting at 63 or 64 years have become less accessible, with new eligibility pushing the retirement threshold higher for individuals born after 1964. As the parliamentary discussions continue, the coalition aims to finalize a roadmap for pension reform alongside other major legislative priorities, including healthcare and income tax restructuring.