Pension Increase 2026: How Much More Money There Will Be Next Year - Germany's Pensioners to See Significant Boost in July 2026
Germany's 21 million pensioners can anticipate a significant boost to their retirement income. The Pensionsteuerungsausschuss has forecasted an increase from July 2025, likely aligned with inflation, which could see pensions rise close to the inflation rate. This would help maintain purchasing power.
Over the past decade, western German pensions have climbed by 40 percent, outpacing inflation, which pushed prices up by just 29 percent. If the projected increase is confirmed, pensioners will receive an extra €3.70 for every €100 of their current pension starting in July 2026.
Pension points are awarded for each year a person earns the average national income. Pensions are indexed to wages, leading to them outpacing inflation in recent years. The projected increase outpaces current inflation, which stands at roughly 2.3 percent. The final pension adjustment is typically set in spring, once the previous year’s wage growth data are available. This will change the value of an earnings point in the statutory pension system, known as a pension point, which is set to rise to €42.30 if pensions are raised by the expected 3.7 percent.
In eastern Germany, pensions have surged by 90 percent between 2000 and 2025, reflecting efforts to align eastern pensions with western levels.
Germany's pensioners can look forward to a substantial increase in their pensions from July 2026, with the rise likely to be close to the inflation rate. This will help maintain their purchasing power and is part of a long-term trend of pensions outpacing inflation.
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