Overview
- Germany's statutory pensions will rise by 3.74% on July 1, 2025, benefiting approximately 21 million retirees.
- The pension level is guaranteed to remain at 48% until 2031, funded by tax revenues rather than increased contributions.
- Retroactive care-insurance deductions of 4.8% in July will temporarily lower net payouts before normalizing in August.
- Rising average wages have increased the cost of earning pension points, disproportionately impacting low-income workers and new entrants to the workforce.
- Experts warn of long-term sustainability challenges, with higher labor costs potentially driving skilled workers out of Germany.