BERLIN, Feb. 1 (UPI) -- The German government Wednesday decided to gradually raise the retirement to 67 from 65 by 2029, six years earlier than previously planned.
The governing coalition of Christian Democrat Union/Christian Social Union conservatives and Social Democrats had planned to raise the retirement age to 67 by 2035 in steps of one month per year starting in 2012, but agreed at Wednesday's cabinet meeting to speed up the measure in light of severe strains on the country's pension system.
The system is based on a so-called generation contract that has the workforce pay the benefits of their parental generation. In light of high unemployment, low-child generations and an ever-aging population, it seemed inevitable that Germans work longer.
Adding to the problem is the fact that many Germans enter early retirement, before the age of 55.
Employees will only be paid in full if they work until age 67. Each year they work less will mean a deduction of 3.6 percent from their retirement bonus.
German Work Minister Franz Muentefering, who ignited the discussion over the retirement age, has been harshly criticized for his plan to bring up the retirement age earlier than planned.
