German Chancellor Friedrich Merz vowed to fully implement all reforms to the pension system proposed by a special commission and officially presented on Tuesday.
"All elements of this reform package must now be implemented swiftly," said Merz during the presentation of the report in Berlin.
"We cannot afford to remove or reject individual measures," he added.
Merz described the 33 proposals as "an overall strategy that only works as a whole." He said, his coalition, which comprises the conservative CDU/CSU bloc and the centre-left Social Democrats (SPD), agreed to implement the package "in full."
The commission made up of 13 experts and politicians had been tasked to come up with proposals on how to reform the German pension system, as the number of pensioners is expected to rise significantly in the coming years with the post-war Baby Boomer generation having begun to retire.
Meanwhile, the number of workers paying into the system is not expected to rise at the same level, which could lead to significantly higher contributions.
Under the plans, which were leaked over the weekend, the legal pensionable age, which is set to rise to 67 by 2031, should be increased by six months over the next decades in line with growing life expectancy.
The minimum pensionable age is also to be raised to 64, according to the commission.
To date, many people have made use of the option of taking a reduced pension at 63 after 35 years of contributions.
This point is separate from taking the state pension at 63 after 45 years of contributions without reduction, which the report recommends abolishing.
A proportion of the contributions should be invested in the stock exchange, with the commission proposing 2% of gross pay rising from an initial 0.5%, with half paid each by the employer and employee. The returns generated are intended to raise pension levels in the future.
Without reform, contributions are expected to rise from 18.6% currently to 19.9% in 2028.
