Germans could now be forced to work into their 70s
LOS ANGELES: Germans could be forced to work into their mid-70s as the country faces a reckoning over what its chancellor sees as a culture of laziness.
A panel of experts has recommended to Friedrich Merz, the German chancellor, that the age of retirement be raised to 73 by 2060, up from the current 65.
Mr Merz recently warned that Germans must be ready to work longer and harder to support the ageing population and faltering economy.
The proposal, by the German finance ministry’s scientific advisory group (SAG), would impose one of the highest retirement ages in Europe on Germans, who are already struggling with soaring energy costs and rising unemployment.
If imposed, Germany’s retirement age would exceed Denmark’s, the highest in Europe at 70, which will take effect from 2040.
Other European nations, including France, Italy, and the UK, are also reviewing their retirement ages in response to ageing populations.
An extract of the report, leaked to Bild newspaper this week, reads: “We will have to work more if we want to maintain the scope of the social security system without simultaneously leaving even larger burdens for future generations.
“The retirement age must be linked to life expectancy.”
The report also noted that the German economy had been “stagnating for years”, in contrast with “comparable economies that are growing significantly more dynamically”.
The news will come as a heavy blow to German workers, many of whom already feel stung by recent accusations from Mr Merz that they were not working hard enough.
It follows warnings from German business leaders that the country’s once-mighty economy is in “crisis”, citing spiralling energy costs, the decline of the car industry – once the pride of the nation – and the highest unemployment figures in a decade.
Mr Merz said in May: “We must work more, and above all more efficiently, in this country. With a four-day week and work-life balance, we won’t be able to maintain this country’s prosperity.”
The remark caused outrage in Germany, where its post-war work ethic is reflected by the popular expression “erst die arbeit, dann das vergnügen”, roughly translated as “work first, then pleasure”.
But some economists have admitted that Mr Merz may have a point.
Moritz Kraemer, the chief economist for German bank LBBW, said: “Unsurprisingly, his comments sparked a national debate over whether the implied accusation of idling Germans was fair.”
In an article entitled Are the Germans too lazy, Mr Chancellor?, he added: “The reality is that in 2023, the average German worker clocked just 1,343 hours per year.
“This is the lowest among all 38 OECD member countries, where the average stands at 1,746 hours per year.”
Recent statistics show that many Germans are already working well beyond the standard retirement age of 67 because of meagre pension payments.
Government data from July 2024 revealed that the number of Germans working past the age of 67 had increased from 660,000 to 1.05 million over the past 10 years.
The pensions crisis poses not only an economic challenge for Mr Merz, but also a political one, handing further ammunition to the Alternative for Germany (AfD) party.
The narrative of Germany being in terminal decline, which has been caused by decades of complacent centrist leadership, is a central theme of recent AfD campaigning.
The party’s strategy is paying off: the AfD secured an unprecedented second place in February’s elections, and is currently polling in first place nationwide.
It has wasted no time in capitalising on this week’s announcement that Germans may now have to work well into their 70s.
Anton Baron, an AfD MP in the state parliament of Baden-Württemberg, said: “Don’t want to work until 70 or even longer? Then there’s only one solution: Vote for AfD!”