Pensions in Germany are to rise by 4.1 percent on 1 July 2027 – that is the assumption of the federal government in its draft for the 2026 pensions insurance report. More than 21 million pensioners would be affected, according to the report, which the “Frankfurter Allgemeine Zeitung” first reported on Wednesday and which is available to Welt and dpa.
The figure is not yet final. The exact number will only be determined in spring, with the decisive statistical data due in March. The adjustment follows the statutory logic and is essentially based on wage developments. With a gross pension of 1,000 euros, a rise of 4.1 percent would arithmetically mean around 41 euros more per month – minus the individual deductions for health and long-term care insurance and any taxes.
What already happened in 2026 – and why the estimate shrank
For the statutory pension insurance, this would be the next adjustment after the increase of 4.24 percent on 1 July 2026. The first estimate from autumn 2025 had still put that rise at 3.7 percent, according to the dpa text. For 2027 the forecast is now lower than assumed in summer, when the report envisaged 4.4 percent – the reason is the latest assumptions on wage developments.
By contrast, the so-called floor on the pension level, which the coalition agreed in late 2025 with its first pension reform, has a rising effect. Until 2031 the rule is: the pension level must not fall below 48 percent. The figure describes the level of protection of pensions in relation to incomes.
Contributions remain stable in 2027 – after that it gets more expensive
For contributors, the rate initially stays at 18.6 percent of gross pay. According to the report, this rate applies unchanged in 2027. From 2028, however, employees and employers must prepare for significant additional burdens: the contribution rate rises by 1.1 percentage points to 19.7 percent, and for 2029 a further increase to 19.8 percent is expected. By 2040 the rate is to climb to 21.0 percent, according to the report. Employees and employers each bear half of the additional costs.
These figures turn out somewhat more favourable than previously feared because of the improved economic outlook. In spring, the Deutsche Rentenversicherung had still forecast an increase to 19.9 percent in 2028 and to 20 percent in 2029.
46.5 percent more pension by 2040?
The report also provides an outlook to 2040. With legislation unchanged, statutory pensions could rise by a total of 46.5 percent over that period, the draft says. That would correspond to an average increase rate of around 2.8 percent per year. Possible changes from the new pension reform planned by the coalition are not yet taken into account.
For the more than 21 million insured, the development is doubly relevant: higher payments improve the current incomes of older people, while employees and companies will be asked to pay more in the medium term. Whether the 4.1 percent holds will be decided in March 2027, when the Federal Ministry of Labour calculates the adjustment on the basis of the final data.
Editor’s note: The figures cited come from the draft of the pensions insurance report and are provisional. The final pension adjustment will only be calculated in spring 2027.
