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Germany Moves To Lock In 48% Pension Level, Projects 3.7% Rise From July 2026

An outside study pegs the long‑term cost near €480 billion, underscoring the fiscal stakes ahead of a parliamentary vote.

Overview

  • The government’s 2025 pension report draft would hold the benefit level at a minimum 48 percent through 2031 by continuing to suspend the sustainability factor.
  • Officials currently expect about a 3.7 percent pension increase starting 1 July 2026, with the final rate traditionally set in the spring.
  • A Prognos analysis commissioned by the INSM estimates roughly €480 billion in additional costs by 2050 tied to the stabilization plan.
  • The package still requires Bundestag approval, and CDU voices including Pascal Reddig urge reinstating the sustainability factor.
  • A Forsa survey cited in the coverage finds 90 percent of respondents doubt the state can guarantee a reliable pension, driving private saving efforts.