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Germany Confirms 3.74% Pension Increase Starting July 2025

The adjustment affects 21 million pensioners, though initial gains will be offset by a retroactive care-insurance surcharge.

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Das Renteneintrittsalter wird sich ab 2024 deutlich verändern. Es gibt aber auch Ausnahmen, die nicht unter die neuen Richtlinien fallen.

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 UnionSPD 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.