Overview

• Deutsche Rentenversicherung reports that only about 40% of the roughly 937,000 people who first drew old-age pensions in 2024 had reached the statutory age, with around 559,000 opting for early retirement.
• A government draft keeps the pension level at 48% through 2031 and lifts the contribution rate to 18.8% in 2027, with 2026 unchanged and the pension fund’s minimum reserve rising from 20% to 30% of a monthly payout.
• The draft projects total pension spending, including health insurance, climbing from €394.4 billion in 2023 to €476.3 billion in 2029.
• The planned Aktivrente would let retirees earn up to €2,000 per month tax-free, with a bill expected soon and a start targeted as early as 2026, though IW estimates point to billions in tax losses and employer and union leaders question its effectiveness.
• An advisory group to Economics Minister Katherina Reiche urges linking the retirement age to life expectancy with roughly a half-year rise every decade after 2031 and warns that holding the 48% level could require over €90 billion in extra federal funds.