Retirement packages are taken into accountEstimates to 2039: Retirees will receive 2.8 percent more money each year
There is currently widespread debate over the federal government’s retirement package – with unclear outcomes. Despite this, pension funds are expected to increase in the coming year, by an average of 2.8 percent, according to estimates. There should be a significant increase by 2039. Subsidies from the federal budget will also increase.
According to official estimates, statutory pension funding will increase by an average of about 2.8 percent per year in the coming years. By 2039, that number will increase by around 47 percent, as shown in the 2025 pension insurance report. The report is available to the German Press Agency and will be discussed in the Federal Cabinet today. The report also shows the estimated 3.7 percent increase in pensions by July 2026 that has been announced.
Pension insurance premium income will increase by around 5.1 percent in 2025 compared to the previous year. Continuity reserves – pension fund reserves to compensate for fluctuations – are expected to reach 41.5 billion by the end of the year. The contribution rate must remain stable at 18.6 percent until 2027 and increase from 19.8 percent in 2028 to 20.1 percent in 2030. For 2039 it is estimated at 21.2 percent.
Estimates of the impact of the controversial pension package on the coalition are included in the calculations presented in the report. Therefore, the planned federal reimbursement as part of the pension package for the extension of the pension rate ceiling will amount to around 100 million euros for the first time in 2027. Until the planned expiration of the pension rate ceiling of 48 percent in 2031, these federal funds will increase significantly: to around 10.1 billion euros.
Measured against total pension insurance revenues, the share should be around 2.0 percent from 2032 – and remain stable at this value until 2039.
