Catherwood LibraryILR School

With its population aging rapidly, Germany is introducing pension reforms designed to make the retirement system more financially sustainable. Proposed changes include creating an investment fund similar to Sweden's model, gradually increasing retirement ages, and requiring additional contributions from employers and employees. Although these reforms could improve the pension system over time, experts caution that younger workers will still face significant financial pressures from taxes, housing costs, and demographic changes. The proposal highlights the difficult balance between supporting retirees and protecting the long-term interests of the workforce.