Retirement at 63 to be abolished - transition rules intended to protect hardship cases
The parliamentary group leaders of the Union and the SPD confirmed at their retreat in Münster that the penalty-free pension after 45 years of contributions will be abolished. SPD parliamentary group leader Matthias Miersch called the move correct, stating that it would free up funds to stabilize the pension system. Union parliamentary group leader Thorsten Frei dampened hopes for fundamental corrections during the parliamentary process. At the same time, both sides announced hardship and transition regulations, as well as a protective pension for people in physically demanding professions.
Those affected are insured persons who reach 45 years of contributions and have therefore been able to retire two years before the statutory retirement age without deductions—currently at 64.5 years of age. Almost 269,000 people recently made use of this option within one year. Those who can no longer take advantage of the regulation in the future may still retire early, but will then face permanent deductions from their monthly pension.
The schedule: The coalition aims to pass the pension reform by the end of the year, with deliberations in the Bundestag taking place in the autumn. An immediate end is not planned; cohorts close to retirement age are to be protected through legitimate expectations and transition periods, the length of which is still open. Resistance continues to come from the federal states: East German state premiers Sven Schulze, Michael Kretschmer, and Mario Voigt, as well as Manuela Schwesig, reject the abolition because early retirement is used at an above-average rate in the East. Federal Chancellor Friedrich Merz had reaffirmed the day before: "We are in agreement that we must end all incentives for early retirement."
For every individual, the number of recognized contribution years is decisive—and this is exactly where a review is now worthwhile. Anyone who has worked abroad or has periods of child-rearing, caregiving, or gaps in their insurance history should request an account clarification from the German Pension Insurance (Deutsche Rentenversicherung). Periods from EU countries and countries with social security agreements can be credited, but are often not automatically recorded in the pension account. The current pension information shows the status; missing evidence can be submitted later as long as documents and witnesses are still available.