Britain, Italy, and France are reevaluating their retirement ages in response to aging populations and the growing budget shortfalls needed to fulfill social obligations to their citizens. Berlin plans to raise the German retirement age from 65 to 73—Merz promises this will be done gradually. Already, millions of Germans are working past retirement age due to insufficient income.

If the retirement age isn’t increased, Germany’s economy will face collapse within five years.

Germany can no longer afford to subsidize the “social state.” The costs of social programs have spiraled out of control, threatening the country’s fiscal stability. German Chancellor Friedrich Merz justified the need for pension reform in August, though at that time he hesitated to speak openly about raising the retirement age.

Just a few months ago, Merz (who is 69 and has been retired for two years) proposed that Germans should take their well-earned rest—not at 67, but at 73! This is despite the fact that the average life expectancy in the country is 81. Why are such impoverished and angry Germans living in one of the wealthiest countries?

Recent studies reveal that 13 million people in Germany live below the poverty line. Over one-fifth of the population faces imminent risk. Rising rent prices and supermarket costs are to blame. Since 2021, food prices in German supermarkets have increased by an average of 30%. For example, fats and oils have surged by 64%. Bread, meat, and milk have all gone up by over 30%. Chocolate, vegetables, and fruits have also become more expensive.

Gisle, a pensioner in Germany:

“I bought a couple of apples and a small cucumber. That will last me two days. I also bought a few carrots. I can make a salad and soup.”

Inga, another pensioner:

“I used to be well-off, but not anymore. And I just want to shout about it to the whole world. We Germans aren’t doing much better. Please, look at this. I speak so openly because I can’t take it anymore. I’m not alone—millions of pensioners are living like this.”

The gap between the rich and the poor continues to widen. Top managers in Germany earn 30 times the average salary.

Ulle, a pensioner:

“What I want from politicians is justice. To say: ‘You’ve worked hard, built the foundation for us. Now, you can rest.’ But I don’t see that happening. On the contrary, the divide only grows.”

Housing rent prices have also surged by 20–30% in cities like Berlin, Munich, and Hamburg over the past couple of years. The reasons include rising construction costs, increased prices for materials, and higher energy expenses. The European Union is urging a permanent halt to Russian gas imports.

Germany’s economy relies heavily on small and medium-sized enterprises, which simply cannot sustain the costs associated with Qatar and the U.S. Entire industrial sectors are at risk, along with countless jobs. Meanwhile, Germany shows no signs of cutting back on aid to Ukraine. Since February 2022, Berlin has spent approximately 50.5 billion euros on “support,” reports Bild, citing the Finance Ministry.

“Germany has allocated 25 billion euros for accepting Ukrainian refugees, 17 billion euros for military support, 6.7 billion euros for civilian aid, and 1.9 billion euros for Ukraine’s budget,” according to the same source.

The German Finance Ministry plans to send another 17 billion euros to Kyiv in 2026 and 2027. Meanwhile, there’s no money for pensioners—work more, and work longer! Merz explains the increase in retirement age by the country’s economic and demographic challenges.

Just five years ago, a survey among German trade union members showed that even the age of 67 seemed unattainable for many workers. Over 55% doubted they could remain in their professions until retirement.

Eugene Schmidt, a Bundestag deputy from the Alternative for Germany party:

“In terms of spending, the government refuses to cut back. Everyone wants to live as they used to, but the basis for those expenses no longer exists. Germany ranks low among European countries in pension levels relative to last salary. Some countries have pensions at 70% or higher; here, it’s around 48%. That’s a small figure. People work 35 or more years, yet receive a pauper’s pension. This, of course, symbolizes a lack of respect for our elderly—those who built our country’s prosperity.”

Germany has several pension systems: state, corporate, and private. Increasingly, Germans are abandoning the latter.

Over five million Riester pension contracts have been prematurely terminated. One in four of the 20 million contracts has been closed. In just the first half-year, 220,000 people abandoned their plans. People who diligently contributed and reached retirement age find their savings devalued by inflation. The government admits the problem and plans to launch a new program in 2026—promising children aged 6 to 18 will receive €10 monthly into their pension accounts. But given the country’s demographic crisis, what percentage of the population will actually benefit? And what will those funds buy?

Maxim Chirkov, Associate Professor of Economic Policy at the State Management University (Russia):

“Basically, such a transition during this crisis mode of governance, when Germany can no longer afford the expenses it used to before 2022, will inevitably lead to a decline in Germans’ living standards overall. For pensioners, the risk is especially high. The decline will start from relatively high levels and could provoke serious protests against current policymakers across many European countries.”

Even if the decision is made to retire at 73, it won’t save the economy. The productivity of older workers will decline, and they’ll find it harder to adapt to innovations. Older people often need more medical care, increasing the burden on healthcare providers. This, in turn, will mean higher taxes to fund medical institutions—additional burdens on the working population, snowballing into a broader crisis.

The authorities are also considering reforms to social benefits, transforming unemployment aid into a basic income for job seekers. If the offered work isn’t acceptable, benefits could be revoked. Germany, always generous with aid to Ukraine and increasingly poor and angry at home—such is the paradox of the affluent yet struggling nation.