German commission proposes older retirement age and state pension fund, sources say

BERLIN, June 20 (Reuters) - Germany could increase its pension age and establish its own state pension fund under proposals by a government-appointed commission, sources familiar with the matter said on Saturday, as Europe's largest economy addresses an ageing population and creaking public finances.

• The commission proposes incremental increases every decade according to life expectancy, rising to 70 by 2092 under its current calculations, the sources said

• Under current German law, the nation's retirement age is set to reach 67 by the early 2030s

• The proposals also include abolishing the option of statutory early retirement from age 63 without deductions and establishing a Sweden-style pension fund, according to the sources

• The goal of the fund, in which contributions backed by workers and their employers are invested in financial ​assets to pay future pensions, would be to stabilise pension levels and increase them from 2040

• The proposals are set to be presented to Chancellor Friedrich Merz on Tuesday

(Reporting by Holger Hansen, Writing by Rachel More, Editing by Rod Nickel)