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German Pensions Enter New Phase With Court Repayment Ruling and Imminent 2026 Rule Changes

From January 2026, the end of trust protection raises the unreduced retirement age for severely disabled people to 65.

Overview

  • A pensioner must repay about €84,600 after courts found gross negligence for concealing a long‑standing accident pension, and the Federal Social Court rejected his appeal, making the judgment final.
  • The DRV’s Rentenatlas 2025 reports stark regional gaps in average pensions after 35 insurance years, with Saarland at roughly €1,805, Thuringia at about €1,572, and a national average near €1,692, alongside marked gender differences.
  • With the removal of trust protection on 1 January 2026, severely disabled claimants can draw an unreduced pension only at 65, and earlier access from 62 carries permanent deductions of 0.3% per month, up to 10.8%.
  • A technical change folds a previously separate supplement into the pension from December 2025, affecting income tests for survivor benefits and taxation; the DRV says the income‑test impact will be applied from 1 July 2026 and does not expect massive immediate cuts.
  • Retirement timing continues to shift by cohort: parts of the 1960 birth year reach the regular age of 66 years and 4 months in 2026, 1963 cohorts can first use early retirement at 63 with about a 13.8% cut given 35 years, and the 45‑year pathway allows earlier, deduction‑free exits at rising ages.