€6.5 billion per year: This is how expensive early retirement is in Germany
The government in Berlin possibly wants to keep the pension without deductions after 45 years of contributions after all. Studies show what this costs. And that primarily higher earners benefit.
The German government is reconsidering its plan to abolish the early retirement option after 45 years of contributions, which allows people to retire without deductions. The proposal, made by an expert commission, has sparked debate within the government, with some, including Chancellor Friedrich Merz, indicating a willingness to revisit the compromise.
The current regulation, introduced in 2014, allows people who have paid 45 years of contributions to retire two years before the regular retirement age without deductions. Studies have shown that the early retirement option benefits mainly higher earners, with 70% of men born in 1957 having had relatively low occupational stress during their 45 years of contributions. The annual costs of the unreduced pension after 45 years are estimated to be at least €4 billion.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
