Overview

• From July 1, 2025, 21 million pensioners receive a 3.74% increase in their statutory pensions and face a one-time 1.2 percentage-point care-insurance surcharge covering January–June contributions.
• Budgets for short-term and respite care are merged into a single annual entitlement of €3,539 for individuals with care grade 2 or higher.
• The Aktivrente scheme will launch in 2026, permitting retirees at statutory retirement age to earn up to €2,000 per month tax-free.
• The Deutsches Institut für Wirtschaftsforschung projects about 230,000 initial Aktivrente beneficiaries and a €770 million annual reduction in tax revenues.
• Trade unions and social groups warn that maintaining the pension replacement rate at 48% through 2031 may jeopardize long-term financing without deeper structural reforms.