According to reports from Berlin, politicians from Germany's two main political parties, the Christian Democrats (CDU) and the Social Democrats (SPD), are engaged in talks on how to manage Germany's growing pensions burden.
According to Reuters, a capping of pension contributions is one likely outcome of the talks. It seems probable that social security officials will seek to maintain in legislation the 19.5% contribution that Germans currently make from their gross salaries into pension funds. However, local media reports have suggested that the government could increase contributions to 19.8%.
As the country looks to tackle the problem of an increasingly ageing population, the governing coalition is also set to agree moves to gradually raise the retirement age from 65 years to 67. According to Reuters, this could be implemented over time between 2012 and 2035.
The negotiations between the CDU and SPD follow the closely contested general election earlier this year, which failed to produce a clear-cut majority for either party. Talks are ongoing to form a workable coalition government, however six weeks after the election, many Germans are worried about the lack of progress being made.