Friedrich Merz Pushes for Pension Reform by Year's End

German Chancellor Friedrich Merz is pushing to have a revamp of the pension system approved by the parliament by the year's end. A governmental commission has recommended adopting a Swedish-style pension fund and gradually increasing the retirement age to stabilize the aging population.

German Chancellor Friedrich Merz is advocating for a significant reform in the country's pension system, aiming for parliamentary approval by the end of this year. This statement was made during a question and answer session held on Wednesday in the Bundestag lower house of parliament.

The proposed overhaul includes the introduction of a Swedish-style pension fund, which is expected to enhance the financial stability of the system. This recommendation comes from a commission appointed by the government.

Additionally, the reform suggests a gradual increase in the retirement age, a strategy regarded as vital for stabilizing the pension framework amidst an aging demographic. The legislative process is anticipated to proceed in autumn, with hopes of completion by year’s end.