Overview
- The statutory pension was raised by 4.24 percent effective 1 July 2026, lifting the current pension value to €42.52 per earnings point and raising monthly payments across the system.
- The Deutsche Rentenversicherung projects a further provisional rise of 4.4 percent for 1 July 2027 but stresses this is a forecast that must be formally set next year.
- Tax rules and published orientation values affect who pays income tax on pensions; simplified mid‑year guides put the July 2026 monthly thresholds at about €1,475 in the East and €1,478 in the West while the 2026 basic tax allowance is €12,348.
- Many pension increases are reduced or offset because they raise contributions for health and long‑term care insurance or are counted when calculating means‑tested benefits such as basic social assistance and housing support, and from 2027 anyone drawing a part pension above 66.66 percent of the full pension will lose entitlement to Krankengeld.
- Longer‑term reform pressure from demographics underpins a commission proposal to end the penalty‑free 45‑years rule (the so‑called 'Rente mit 63') with proposed transition and hardship protections and estimated savings of about €10 billion a year.