Overview
- Germany’s cabinet has set a 2026 “zero round” for standard benefit rates pending Bundesrat approval, which also holds Grundsicherung in old age at current levels for low-income pensioners.
- The new Grundsicherung from 2026 abolishes the asset grace period and introduces lower, age-tiered exempt amounts, tightening means tests for savings and non‑earmarked private investments.
- Jobcenters will be able to impose sharper sanctions, including cutting the standard rate after a first refused job offer, with experts warning of likely legal challenges and strict constitutional limits.
- Wohngeld has been increased on average by about 15% since January 1, 2025, with roughly two million households eligible, yet consumer groups say many pensioners who qualify still do not apply.
- Bundesbank chief Joachim Nagel urges a later retirement age to protect prosperity, while unions and social groups reject the move, as statutory health funds signal more contribution increases and a finance commission readies proposals for spring.