Germany Raises Retirement Age to 67, Backs Higher Pensions for Stay-at-Home Moms

Not all wisdom on HR and benefits resides in the United States. Overseas other countries are enacting changes in their employment laws in response to the needs of a changing society.

Latest case in point is Germany, where today the legislature approved a pension overhaul that lets some people retire early on full pensions.  Legislators raised the retirement age from 65 to 67, and people who have paid pension contributions for 45 years will be able to retire at age 63 without any cut in their pension.

Mothers who stayed at home to raise their children and tend to their families also will be granted higher pensions under the new law. When was the last time anyone suggested instituting a pension system for stay-at-home moms in the U.S.?

Periodically in our debate in the U.S. over retirement policy, someone mentions raising the retirement age but then policymakers and Congress flinch from making such a fundamental change to our retirement policy. It’s a complicated subject requiring thoughtful debate, but at least Germany has pointed a possible way forward.

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