Germany Announces Key Pension Changes for 2025

New rules include higher pensions, increased taxes, and expanded digital access to retirement data.

The statutory retirement age will increase to 66 years and 4 months for those born in 1960, with gradual rises planned until 2031.
Pensions are expected to rise by approximately 3.5% starting July 2025, though the exact figure will be confirmed after the federal election in February.
The taxable portion of pensions for new retirees will increase to 83.5%, while the tax-free allowance (Grundfreibetrag) will rise to €12,096 annually.
A new digital pension overview will become mandatory for all major providers, offering centralized access to retirement entitlements from January 1, 2025.
Social contributions for retirees, including health and long-term care insurance, will increase, leading to higher costs for average pensioners.