Overview

• The pension value will rise from €39.32 to €40.79, representing a 3.74% increase effective July 1, 2025.
• July payments will be reduced by a one-time retroactive care-insurance surcharge of 1.2%, with full net gains realized starting in August.
• Approximately 73,000 pensioners may need to file tax returns as the increase pushes their income above the basic tax allowance of €12,096 for 2025.
• The Union–SPD coalition has pledged to stabilize the pension level at 48% until 2031, funded through tax revenues, despite ongoing demographic and fiscal challenges.
• Rising wage thresholds for pension points, now €50,493 annually, could reduce future entitlements for lower-income earners and early-career workers.