Germany Raises Retirement Age to 64: What Millions of Workers Face in 2026

Germany’s federal government is moving forward with pension reform that would force millions of workers to wait one extra year before claiming retirement benefits. Under proposals from the government’s pension commission, workers with 35 years of contributions would see their minimum retirement age rise from 63 to 64. The change is part of a broader overhaul aimed at stabilizing Germany’s aging pension system, but it has triggered sharp conflict within the ruling coalition and drawn fire from opposition parties.

What the pension reform actually changes

The Alterssicherungskommission (pension commission) proposed raising the minimum entry age for long-service pensions from 63 to 64 years for workers with 35 years of employment history. The government also plans to abolish the penalty-free early retirement option after 45 contribution years, a move that has proven especially controversial. Chancellor Friedrich Merz and Labor Minister Bärbel Bas agreed in summer to treat all 33 commission recommendations as a single package that cannot be altered.

Why the SPD and CDU are clashing

The SPD has mounted strong resistance to scrapping the 45-year rule, which allows workers in physically demanding jobs to retire without penalties. Multiple CDU state premiers have also opposed the move. North Rhine-Westphalia’s Minister-President Hendrik Wüst called on Bas to submit a draft bill immediately so the coalition can debate specifics. The Greens have filed parliamentary questions demanding to know how much money the reform actually saves the pension fund.

How many workers are affected

The reform would impact millions of Germans who have worked continuously for decades. The government has not yet published detailed impact analysis showing savings or worker numbers affected. According to the Labor Ministry’s response to Green party inquiries, officials are still developing the legislative framework for the commission’s recommendations, suggesting the details remain unsettled. Opposition parties argue the modest savings do not justify forcing workers to labor longer.

What happens next

Union and SPD leaders are seeking compromise on the pension package. Both parties recognize that failure to pass reform could threaten their political survival, but they also face internal pressure from members who oppose key elements. The government has not yet released a formal bill, leaving the exact terms of the 64-year threshold and the 45-year rule still open to negotiation within the coalition.

Final Thoughts

Germany’s pension reform faces a critical test: the government must balance fiscal sustainability against worker welfare. With the SPD resisting the harshest cuts and the Greens demanding proof of savings, the final bill will likely differ from the commission’s original proposal.

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