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Germany’s Pension Squeeze Intensifies as Business Urges Benefit Limits and Voters Resist Cuts

A 2026 law will end trust protections for some severely disabled people, curbing early‑retirement options.

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Overview

  • DIHK president Peter Adrian called for limiting services in pension and care systems and for more individual cost‑sharing to prevent further hikes in contributions and taxes.
  • An Allensbach survey found 84% expect a higher retirement age and 78% foresee lower pensions, yet only 23% accept raising the age and just 7% accept smaller benefits.
  • From 2026 the removal of 'Vertrauensschutz' will mean severely disabled people born in 1964 or later face standard reductions for early retirement, with cuts of 0.3% per month taken early.
  • The Deutsche Rentenversicherung reports a 2025 standard pension of €1,836 gross per month, underscoring the scale of benefits as debate grows over financing and distribution.
  • Policy contention sharpened as proposals to tie retirement ages to life expectancy and to scrap or narrow early‑retirement routes gained attention, while the planned Aktivrente drew warnings of at least €2.8 billion in lost tax revenue with uncertain labor gains.