Overview
- A government draft of the annual pension report projects an increase of about 3.7% from 1 July 2026, with the final rate to be set in spring after complete wage data.
- The draft factors in the coalition’s bundle: a legally secured 48% pension level through 2031, an Aktivrente, and an expanded Mütterrente costed at roughly €62.7 billion through 2039 (about €5 billion a year).
- Employer president Rainer Dulger and Ifo chief Clemens Fuest call for pausing the Mütterrente expansion, while SPD figures and the CSU reject a rethink and insist on proceeding.
- The government aims to bring the pension bills to the Bundestag in November, and the report now sees the contribution rate holding at 18.6% until 2028 before rising to 19.8%.
- The Aktivrente is due from 1 January 2026, allowing employed pensioners €2,000 a month tax‑free while still paying health and long‑term care contributions, and the DRV will change survivor‑benefit income assessment on 1 December 2025.