While Berlin sends billions to Ukraine and turns a blind eye to migration costs in Germany, voices are being raised for Germans to work longer to save the welfare system. German Federal Chancellor Friedrich Merz (CDU) is preparing the country's residents for a longer working life.
According to a new proposal, the retirement age in Germany could gradually be raised to 73 years as part of the government's attempt to save an increasingly strained welfare system. Critics warn that the ideas about retirement age 73 lack both realism and fairness.
Friedrich Merz has stated that Germans must get used to the idea of less leisure time and longer working lives to finance pensions, healthcare and elderly care.
Meanwhile, economic analyses show that the country's former strength as the EU's economic engine has turned into stagnation. The deficit in public insurance systems is growing rapidly and several German states report shortages of both personnel and funding in healthcare.
The government's expert council now warns that demographic developments require decisive action – more workers, higher fees and later retirement.
Germany has proposed raising the retirement age to 73 to prevent the collapse of the pension system, per Reuters
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Money to Ukraine prioritized
But while Germans are urged to work until well after 70 years of age, Berlin continues to send billions to Ukraine. According to German media, the military and humanitarian support amounts to well above 40 billion euros since 2022.
Critics argue that the current government simultaneously fails to address the homeland's own financial problems. The growing national debt, rising energy prices and weak industrial production have put welfare under severe pressure – but aid to Kiev remains unchanged.
Many Germans therefore wonder how the country can afford to finance the war abroad but not its own pensions.
Immigration's impact
The official explanation for the crisis is an aging population. But several economists argue that the problem rather lies in the extensive immigration over the past two decades.
According to calculations by pension researcher Bernd Raffelhüschen, many newcomers contribute less to the social system than they receive back, especially during their first years in the country.
In an interview with German tabloid Bild from October 2024, he said that immigration will not save either the economy or welfare – rather the opposite.
Other experts also argue that integration problems and low employment among certain immigrant groups have become a long-term structural concern for the German economy. Despite this, the issue receives limited space in political debate.
The chancellor's dilemma
The Federal Chancellor thus faces a double dilemma. On one hand, the finance ministry demands reforms to avoid collapse in the welfare system. On the other hand, new cuts and raised retirement age risk increasing discontent among voters who already feel that burdens are distributed unfairly.
The opposition, particularly Alternative for Germany (AfD), has quickly exploited the situation and describes the proposal as a betrayal of the country's workers. Meanwhile, Merz tries to maintain a hard line against criticism and present the reform as a necessity.
But more and more Germans are now asking the question: why should citizens work longer, while billions continue to flow to both Ukraine and a costly migration system that few still believe will pay for itself?
FACT BOX: Germany's welfare system under pressure
- Pension system: The statutory retirement age in Germany is currently 67 years, but proposals exist to gradually raise it to 73.
- Economy: Germany's GDP growth has fallen to below 0.5 percent during 2024–2025, resulting in high inflation and reduced industrial production.
- Support to Ukraine: Since 2022, Germany has allocated over 40 billion euros in military, economic and humanitarian aid – the second largest contribution within the EU after the USA.
- Migration: Around 17 million people in Germany have foreign backgrounds. Integration and social expenditures are estimated to cost the state over 30 billion euros annually.
