Germany has reached a new milestone in its pension system. According to a report by the Deutsche Rentenversicherung (DRV), approximately 19.1 million old-age pensions were being paid out at the end of 2025, the highest figure ever recorded. Total pension expenditure for the year amounted to around €301 billion.
Rüdiger Herrmann, Chairman of the DRV Representative Assembly, underscored the central role the state pension plays in the lives of German households. For the majority of households in Germany, the pension remains the most important source of income in old age, he stated.
Herrmann called on policymakers to factor this reality into their decisions and to ensure that pension benefits remain reliable well into the future, a comment directed at the ongoing reform discussions currently under way in the country.
The DRV report also shed light on a significant trend: a large share of new retirees are choosing to leave the workforce before reaching the standard retirement age. Around 30 percent of all newly commencing old-age pensions in 2025 came with deductions due to early retirement. On average, these pensions were claimed approximately 33 months before the statutory retirement age was reached.
The future of Germany's pension system is set to take centre stage at a high-level meeting between coalition leaders, trade unions, and employers' associations on Wednesday evening. The gathering is intended to give these key stakeholders an opportunity to weigh in on the government's planned reforms covering taxation, employment, social policy, and the reduction of bureaucratic burdens.
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