Move to lower retirement age in Germany hits a wall of criticism

Lowering retirement age in Germany will not be smooth sailing as the move comes under heavy fire from opposition due to the “wrong signal” it would send to countries still struggling to come out of  recession such as Spain, Greece and Portugal.

German EU commissioner Günther Oettinger said that while the European Union is expecting Greek people to work longer for less money, as well as implement harsh job market reforms, Germany is going in the other direction, potentially allowing longer-serving employees to retire at the age of 63.

Instead of lowering the age of retirement, the discussion should be around the skills-shortage that the Eurozone’s largest economy is facing. The EU energy commissioner said that politicians should rather discuss a retirement age of 70 and help equip people with professional training needed for them to lead a longer working life.

Various business groups as well as a number of economists have criticised Angela Merkel’s coalition government over the proposed pension reforms, saying that the move will add an increasing amount of financial pressure on an economy that is already having a tough time with a rapidly ageing population.