Pensions in Germany could increase by 3.73 percent next year, exceeding earlier projections. This comes from the draft of the 2025 Pension Insurance Report by the Federal Ministry of Labour, which was made available to the AFP news agency on Friday. In the summer, a smaller increase of 3.1 percent had been forecast. Pensions are adjusted every year on July 1, though the final figure will only be determined in the spring once sufficient data is available.
The report also offers a more favorable outlook for the pension insurance contribution rate, suggesting it could remain stable at 18.6 percent through 2027. In the following years, it is projected to gradually rise, reaching 19.8 percent, then 20.0 percent, and eventually 20.1 percent by 2030. The more positive forecast is attributed to stronger-than-expected growth in contribution revenues, which could increase by around 5.1 percent in 2025 compared to the previous year.
The pension report also takes into account the effects of the pension reform package approved by the federal cabinet in early August. The package, among other measures, aims to secure the pension level at 48 percent. However, the Bundestag must still approve the proposal.
The Labour Ministry, led by Bärbel Bas (SPD), sent the report to other ministries on Friday for review and coordination.
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