France’s recent pension reform has raised the retirement age from 62 to 64, igniting widespread protests and public dissent against the stricter conditions for full benefits. In comparison, Germany is gradually increasing its retirement age to 67, while Italy faces challenges with loopholes allowing earlier retirement. Denmark adjusts its retirement age based on life expectancy, potentially reaching 70 by 2040. Austria mandates pension contributions for all, currently allowing men to retire at 65 and women at 61, with no immediate plans for an age increase.
Working Until 64 Instead of 62: Understanding France’s Pension Reform
France has recently made headlines with significant changes to its pension system. In 2023, the retirement age was raised from 62 to 64, a move that sparked widespread protests across the nation. Despite the government’s efforts to implement this reform, which was pushed through without a vote in the National Assembly, it faced fierce opposition from the public, with two-thirds of the population against the change.
As noted by Friederike Hofmann, a correspondent for ARD in Paris, while the retirement age has been increased, the conditions for receiving full benefits have also become more stringent. Individuals are now required to have contributed for 42 or 43 years to qualify for full pension benefits, compared to the previous requirement of 41.5 years. Those who fall short of this target will have to work until the age of 67 to receive their pensions.
This reform came into effect after several months of sometimes violent protests, highlighting the deep public discontent with the changes to the pension system.
Pension Regulations in Germany Since 2007
In Germany, the retirement age has been gradually increasing since the enactment of the Age Limit Adjustment Act in 2007. For individuals born from 1964 onward, the standard retirement age is now set at 67. There are transitional agreements for those born between 1947 and 1963, allowing for a gradual adjustment of the retirement age.
To retire early without penalties, individuals in Germany must have at least 45 years of work experience. However, early retirement without deductions at age 63 is no longer an option, as noted by pension advisor Christian Lindner from Langebrück, Saxony. He emphasizes that this rule only applies to individuals born before 1953, meaning that younger generations will see their retirement age rise gradually to 65 even if they have the required contribution years.
The imminent retirement of the baby boomer generation is likely to exacerbate the existing shortage of skilled workers in Germany.
Comparative Retirement Ages in Europe
A recent report by the Organisation for Economic Co-operation and Development (OECD) reveals that Germans face one of the longest working lives in the EU, retiring at nearly 66 years old in 2022. In comparison, the Dutch and Danes work until almost 67, while Spaniards retire at 65. In Austria, the retirement age is 65 for men and 61 for women. The French and Italians typically retire close to 64, while Greeks and Luxembourgers retire as early as 62.
According to OECD pension expert Monika Queisser, although many countries have followed Germany’s lead in raising the retirement age, the combination of a high contribution requirement and a later retirement age in Germany remains particularly strict compared to other nations. This policy aims to mitigate the risk of poverty among the elderly and reflects a broader trend toward increasing the retirement age.
Pension Reforms and Loopholes in Italy
Italy has also been grappling with pension reforms. Although the official retirement age has been raised to 67, many Italians still retire at an average age of 62, often with full benefits due to existing loopholes. As ARD correspondent Andreas Herz explains, the government is now looking to close these gaps, with new employees expected to work until age 71. Pensions constitute the largest expense in Italy’s state budget, making this issue particularly pressing.
The Institute of the German Economy warns that if these reforms are not addressed, it could lead to significant economic challenges and adverse effects on the labor market.
Denmark’s Progressive Retirement Age
Denmark has taken a different approach, with a retirement age that adjusts according to the average lifespan of its citizens. Currently set at 67, this age is expected to keep rising—potentially reaching 70 by 2040. According to correspondent Rikke Detlefsen, individuals like her daughter may have to work until 74 if demographic trends continue.
Danish citizens receive a tax-funded pension of 965 euros per month, with additional support for those without private pension plans. To maintain this system’s sustainability, the retirement age is set to increase steadily. However, many workers in physically demanding jobs, such as construction and caregiving, are already retiring early due to the physical demands of their roles, prompting concerns that even more will seek early retirement as the retirement age rises.
Austrian Pension Contributions for All
In Austria, pension contributions are mandatory for everyone, including self-employed individuals and civil servants, a system that has been in place since 2004. Unlike Germany, where exceptions exist for politicians, Austria has abolished special rights for lawmakers, requiring them to contribute to the same pension system as everyone else. Here, employers contribute 2.3 percent more than employees, resulting in a total pension contribution rate of 22.8 percent—higher than Germany’s 18.6 percent.
Currently, there are no plans to increase the retirement age to 67 in Austria. For now, men can retire at 65, while women have a retirement age of 61.