German Chancellor Friedrich Merz (CDU) has pledged that the federal government will implement the pension commission's reform recommendations in their entirety. "All elements of this reform package, I stress, all elements of this reform package must now be implemented swiftly," Chancellor Friedrich Merz (CDU) said on Tuesday in Berlin. "You cannot unpick this now, everything interlocks," Labour Minister Bärbel Bas (SPD) added, also making the case for implementing the complete package.
"We cannot afford to remove or reject individual measures," Merz emphasised. He described it as a "comprehensive concept that only works in its entirety." The timeline for implementation is to be discussed at the coalition summit planned for 1 July. Following that, Bas's ministry will prepare one or more draft laws for the pension reform, on which decisions are expected to be made in the second half of 2026.
"It must happen quickly," the chancellor made clear. The goal now is to "pass a major solution that makes our pension system secure." The statutory pension would remain "the most important pillar in our system." The additionally planned capital pension would "lead to an overall higher total pension level while contributions fall."
Bas said the goal is to begin the legislative process after the parliamentary summer recess. There will certainly need to be further discussions on the details, including within the coalition factions. She is, however, "very confident" the project will ultimately succeed, said the labour minister and SPD deputy chair.
The long-term goal, she added, is "an employment insurance scheme" for all citizens.
Both Merz and Bas stressed there is no alternative to the measures. "Without reform, pension levels would inevitably fall and contributions would rise," the chancellor said. The government wants to reverse this: "We want pension levels to rise and contributions to fall." Merz also assured that "the current pension level will be maintained."
The chancellor acknowledged that pensions will in future rise somewhat more slowly than would have been the case without the reform. This is necessary, he said, to distribute burdens fairly in the context of demographic change "across all societal groups and across all generations."
SPD politician Annika Klose, who sits on the commission, said members of parliament should ideally be subject to mandatory statutory pension insurance from the next legislative term onwards. Klose acknowledged that scrapping the so-called "retirement at 63" scheme is "of course a difficult issue" for the SPD.
Commission chair Frank Weise described the package of 33 recommendations as "a sensibly balanced solution for all parties involved." "If you add it all up, you could say there is a good prospect of later reaching 70 percent of your salary," he said, referring to the future net pension relative to net earnings in the years before retirement.
"This is about reform, we do not want to start a revolution," said commission co-chair Konstanze Janda. The proposed changes are intended to take effect over the long term. The future ideal, she emphasised, is a unified employment insurance scheme, with civil servants ideally also brought into the system.
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