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Germany Eyes Retirement at 73 Amid Pension Crisis
14 Dec
Summary
- Germany proposes raising retirement age to 73 by 2060.
- Social Security trust fund depletion projected by late 2032.
- Raising retirement age could cut benefits by up to 20%.
Germany is confronting the challenge of an aging populace, prompting a controversial proposal to raise the retirement age to 73 by the year 2060. This initiative aims to address the sustainability of the national pension system, which is becoming increasingly strained.
Similar demographic pressures are leading other developed nations to consider or implement higher retirement ages. Denmark is set to increase its retirement age to 70 by 2040, and France recently raised its age from 62 to 64, despite public opposition. The United States is also discussing potential adjustments to its retirement policies.
In the U.S., the Social Security trust fund's depletion is projected for late 2032, potentially leading to substantial benefit cuts. While proponents of raising the retirement age highlight increased life expectancy as a justification, opponents express concern that such a measure could result in significant lifetime benefit reductions for many workers, particularly vulnerable populations.
