Pension Reform Possibilities for Germany

This Discussion Paper takes stock of the functioning and challenges of the German pension system and provides an overview of the main reform options currently discussed in the public debate.

Highlights

• Demographic ageing, labour shortages and weak growth challenge the sustainability of the German pension system and the adequacy of statutory pensions.
• The paper reviews the functioning of the German pension system and assesses the main reform proposals currently discussed.
• Ensuring fiscal sustainability, pension adequacy and social fairness at the same time calls for a comprehensive reform package.
• A comprehensive reform package should combine labour market reforms to increase participation and hours worked, higher effective retirement ages, demographic adjustment of pension indexation, and a stronger role for supplementary pensions.

Information and identifiers

Discussion Paper 250. June 2026. Brussels. PDF. 50pp. Tab. Graph. Bibliogr. Free.

KC-01-26-050-EN-N (online)
ISBN 978-92-68-40198-9 (online)  
ISSN 2443-8022 (online)
doi:10.2765/6605449 (online) 

JEL classification: J26, J32, H55.

Disclaimer

European Economy Discussion Papers are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs, or by experts working in association with them, to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission.