Overview
- From 1 July 2025, each earnings point is worth €40.79, and the government’s 2025 report projects about a 3.7% rise from July 2026, with the final rate to be set in spring 2026.
- The cabinet’s October 2025 Aktivrente plan would allow tax‑free additional earnings up to €2,000 per month from 1 January 2026 after reaching the regular retirement age, pending parliamentary approval.
- Pensions start only on application, with retroactive payment safeguarded by a three‑month window after eligibility; errors can be corrected via a four‑year review request for back payments.
- Early retirement from 63 requires at least 35 insurance years and carries a permanent 0.3% monthly reduction, whereas 45 qualifying years permit an earlier, deduction‑free start; targeted steps in the last five years include voluntary V0210 payments and use of abolished earnings caps since 2023.
- Low pensions can trigger means‑tested basic security below roughly €1,062 per month, severely disabled people gain earlier access and tax relief, and Krankengeld rules—70% of gross capped at 90% of net—are reinforced by court rulings that preserve entitlements when disability pensions are granted retroactively or temporarily.