The president of the German Institute for Economic Research (DIW) has stated that abolishing the pension available without deductions after 45 years of contributions is financially unavoidable. The comments were reported by Deutschlandfunk on Monday, August 3, 2026.
Marcel Fratzscher, who leads the Berlin-based institute, argued that the current rule allowing workers with 45 contribution years to retire without pension deductions is no longer sustainable. According to the reporting, Fratzscher described the removal of this provision as a decisive element, saying that without it, broader pension reform efforts would fail.
The remarks come amid an ongoing political debate in Germany over the future of the pension system. The so-called "pension at 63" — which permits long-term contributors to retire early without financial penalties — has become a focal point of discussion. The taz reported that while SPD leader Saskia Esken is open to changes, Bavarian premier Markus Söder remains skeptical.
Fratzscher's position aligns with concerns raised by other commentators about the long-term financing of Germany's pay-as-you-go pension system. As the population ages and the ratio of workers to retirees shifts, policymakers face mounting pressure to adjust benefits or contribution periods. The DIW president's intervention adds an economic expert voice to a debate that has largely been framed in political terms.
The CDU has also come under scrutiny for its handling of the issue, with critics suggesting that reopening the reform could be a strategic misstep. The discussion is expected to intensify as coalition negotiations over the next federal budget proceed, with pension financing likely to remain a central point of contention.
