Overview

• The Deutsche Rentenversicherung’s 2024 report shows near‑balance finances with €402.0 billion in income versus €402.8 billion in expenditures and 21.4 million pensioners, as the average retirement entry age reaches 64.7 years.
• The 3.74% pension rise effective 1 July 2025 reaches retirees in full with September payments after care‑contribution surcharges in July and August, lifting the pension point value to €40.79.
• A separate supplement for certain disability pensions pays out once between 10 and 20 September 2025 and will be folded into regular monthly payments from December 2025 with a recalculation based on entitlement points.
• Despite a higher basic allowance in 2025 (€12,096 for singles; €24,192 for couples), the finance ministry reports about 73,000 people newly became income‑tax liable after the July increase, with pension‑related tax receipts projected to rise by roughly €4.1 billion versus 2024.
• The Economics Ministry’s advisory board warns social contributions have jumped to 42.5% and could approach 50%, recommending retirement‑age indexing, moderated pension growth for higher earners, and curbs on the no‑deduction “63” pathway, while business groups call for limiting pension and care benefits to contain labor costs.