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Germany Faces Pension Strain as Retirement Age Outpaces Longevity and Sick‑Pay Rights Narrow

New government figures signal leaner protection ahead for retirees who keep working.

Overview

  • Official data show life expectancy for new retirees has barely moved while the statutory age for a full pension rose by more than a year, and the average retirement start also shifted later.
  • From July 2026, statutory pensions rise 4.24 percent nationwide, which adds about €77.85 a month to a standard 45‑year pension, and recipients are urged to check adjustment letters quickly because appeals are time‑limited.
  • A Cologne regional labor court ruled that anyone drawing a full old‑age pension loses entitlement to Krankengeld, which is the statutory wage‑replacement benefit during long illness, even if they keep working and paying health insurance.
  • A health finance commission proposes ending Krankengeld for people who work and draw a high partial pension worth at least two thirds of a full pension, a change that is not yet law and is pitched to save about €36 million in 2027.
  • More than 10 million pensioners receive under roughly €1,100 a month and price rises have cut recent income gains, a squeeze that welfare advocates say many could not offset with private or workplace pensions given high housing and living costs.