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Germany’s 2026 State Pension Rise Forecast at 3.37%

Austria’s move to curb indexation for higher pensions in 2026 is sharpening the equity debate.

Overview

  • The Rentenversicherungsbericht points to an increase of about 3.37% from July 2026, with the final figure dependent on official 2025 wage data.
  • By law, the July adjustment is set through the Rentenwertbestimmungsverordnung issued by the government and approved by the Bundesrat.
  • Pensions rose 3.74% in 2025, taking the current pension value to €40.79, while average gross payments are roughly €1,100 per month.
  • Austria will exclude pensions above €2,500 per month from automatic indexation in 2026 and instead grant a one‑off payment of up to €67.50, according to reporting that cites Statistik Austria.
  • German debates feature redistribution ideas such as DIW’s proposed “Boomer‑Soli” and comparisons with the Netherlands’ two‑pillar system that combines a state floor of about €1,200 with widespread employer plans.