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Germany Launches Pension Overhaul Phase as 2026 Rules Take Effect

A government commission is preparing mid‑2026 reform proposals, with new 2026 rules reshaping retiree earnings options, contribution limits and enforcement.

Overview

  • From January 1, the new Aktivrente lets those working past the statutory retirement age earn up to €2,000 per month tax‑free, excluding early retirees, the self‑employed and minijobbers.
  • The pension contribution rate stays at 18.6% for 2026 and the assessment ceiling rises to €8,450 per month, with the next annual pension adjustment scheduled for July 2026.
  • A Baden‑Württemberg social court ruled the pension authority may withhold up to half of a monthly pension to recover overpayments if the beneficiary’s subsistence remains secured.
  • During Bürgergeld receipt, Jobcenters pay no pension contributions; the period counts only as credited time toward the 35‑year waiting requirement and not toward the 45‑year pension.
  • The debate over a work‑years‑based ‘Leistungsrente’ has intensified as the new commission begins work and SPD’s Alexander Schweitzer backs shifting non‑insurance costs to the tax budget and studying levies on capital and rental income.