The government wants to change the pension system. Chancellor Friedrich Merz supports the plans. Minister Bärbel Bas supports the plans too. An expert group makes 33 suggestions. One part is the new capital pension. Bosses and workers save extra money here. This money goes into stocks and bonds. Profits will help pay for future pensions. The fund Kenfo could manage this money.
Another point is the end of retirement at 63. People cannot retire early without losing money. This saves the state a lot of money. The age for retirement will also go up. It grows with the life expectancy. Unions think this is not fair. They say many people cannot work so long. People with hard jobs are worried.
The agency Scope likes the reform. It says Germany stays a safe payer for money. But the reform costs money at the start. People might spend less money. The good results come after the year 2035. Pensions rise by 4 point 24 percent in July. Other prices change too. For example, the price for gas changes.
