Overview
- Official figures show 21.2% of retirees—about 3.744 million people—in 2024 were at risk of poverty or social exclusion, up 328,000 since 2022, with women more affected than men.
- The 2026 package keeps the pension level at 48% through 2031, foresees roughly a 3.7% benefit increase in July 2026, maintains the 18.6% contribution rate, and relies on substantial federal transfers.
- The new Aktivrente allows retirees in social-insurance employment to earn up to €2,000 per month tax-free to encourage continued work beyond the statutory age.
- A contribution-based eligibility idea tying retirement to 45 insurance years is under discussion, drawing interest from senior politicians and criticism over disadvantages for late starters who could work to about 70.
- Payment interruptions have occurred for retirees who failed to provide bank details by end-December 2025, with Postbank stating arrears will be paid once accounts are confirmed; Wohngeld rules continue to aid low-income households, including a €1,800 disability income disregard and support for about 1.2 million households, over half involving retirees.