German statutory pensions rose by 4.24 percent on 1 July 2026. The size of the 2027 increase is not known yet. There is an official model calculation, but the government sets the actual figure only in spring 2027.
This guide explains how the annual pension adjustment (Rentenanpassung) works, what is known about 2027, and what an increase means in euros for a €1,500 gross pension after health and care insurance, and for tax. As of 25 October 2026.
1. Key points
- Since 1 July 2026, one pension point is worth €42.52 a month, 4.24 percent more than before.
- For 1 July 2027 there is only a model calculation from the 2025 pension insurance report: €44.32. It started from an assumed 2026 value that turned out lower than the real one.
- The binding 2027 figure will be announced in spring 2027.
- Up to and including 1 July 2031, a floor keeps the pension level at no less than 48 percent.
- The increase is fully taxable, because the tax-free part of a pension is fixed as a euro amount.
2. How the adjustment works
Simplified, your monthly pension is your pension points (Entgeltpunkte) times the current pension value (aktueller Rentenwert). Your points are fixed when the pension starts; the pension value changes every 1 July. Since July 2023 it has been the same in eastern and western Germany.
The formula in § 68 SGB VI (Social Code, Book VI) has three parts. The most important is the previous year’s wage growth: when wages rise, pensions rise. A contribution-rate factor dampens the increase when pension contributions go up. A sustainability factor dampens it when there are more pensioners per contributor. The law rules out a cut in the pension value.
On top of that sits the Haltelinie, a floor under the pension level (Rentenniveau): the pension level before tax may not fall below 48 percent. If the formula gives less, the pension value is raised to reach 48 percent. The 2025 pension package, BGBl. 2025 I No. 362, extended this rule up to the adjustment on 1 July 2031. The federal budget pays the extra cost.
3. The 2026 increase
On 1 July 2026 the pension value rose from €40.79 to €42.52, an increase of 4.24 percent. The legal basis is the pension value regulation 2026 (Rentenwertbestimmungsverordnung) of 16 June 2026. According to Deutsche Rentenversicherung, the formula alone would have produced 4.05 percent, or €42.44. The floor was already in effect in 2026.
| From | Pension value | Increase |
|---|---|---|
| 1 July 2024 | €39.32 | – |
| 1 July 2025 | €40.79 | 3.74% |
| 1 July 2026 | €42.52 | 4.24% |
| 1 July 2027 | not set yet | decided in spring 2027 |
The 2024 and 2025 values come from the Federal Ministry of Labour press release of 6 March 2025.
4. What is known about 2027
The only official figure for 2027 is in the 2025 pension insurance report (Rentenversicherungsbericht), adopted by the cabinet in November 2025. Its middle scenario puts the pension value at €44.32 on 1 July 2027, an increase of 4.75 percent. That calculation, however, assumed €42.31 for July 2026. The actual value became €42.52.
Measured against the actual value, €44.32 would be roughly 4.2 percent. That is our own conversion, not an official forecast. The report itself calls its figures model calculations, and its scenarios range from €43.78 to €44.75. Percentages circulating in the media are estimates, not a decision.
What happens next:
- Expected in November 2026: the 2026 pension insurance report, with a new model calculation based on €42.52.
- Spring 2027: the increase is announced once 2026 wage data are available. In 2025 the announcement came on 6 March.
- By June 2027: the pension value regulation, with Bundesrat consent. In 2026 it was dated 16 June.
- From 1 July 2027: pensions are paid at the new value.
5. What it means for a €1,500 pension
A gross pension of €1,500 in June 2026 rose by €63.60 to €1,563.60 on 1 July 2026. The table shows what different 2027 increases would add to that. Health and care insurance are deducted at 12.35 percent: half of the 14.6 percent general health rate and of the 2.9 percent average additional contribution, plus the 3.6 percent care insurance rate that pensioners pay in full. Without children the care rate is higher, and your health insurer’s additional rate may differ.
| 2027 increase | Gross increase | New gross pension | Increase after health and care |
|---|---|---|---|
| 3.00% | €46.91 | €1,610.51 | €41.11 |
| 4.00% | €62.54 | €1,626.14 | €54.82 |
| 4.23% (€44.32 pension value) | €66.19 | €1,629.79 | €58.02 |
| 5.00% | €78.18 | €1,641.78 | €68.52 |
Of the €63.60 added in 2026, about €55.75 remained after the same contributions. Whether income tax takes a further share depends on your total income. The German pension gap calculator shows how far your pension falls short of your spending.
6. Tax: every increase is fully taxable
Part of a statutory pension is tax-free. This Rentenfreibetrag (pension allowance) is calculated as a fixed euro amount in the year after the pension starts and then applies for life. Under § 22 EStG, regular pension adjustments do not lead to a recalculation. Every increase is therefore taxable in full.
An example: the pension started in 2020, so the taxable share was 80 percent. In the first full year the annual pension was €15,000, which fixes the allowance at €3,000. If the annual pension later rises to €18,000, €15,000 is taxable, or about 83 percent. Someone retiring in 2026 is taxed on 84 percent; for a 2027 start it is 84.5 percent.
Whether tax is actually due depends on your taxable income. The basic personal allowance is €12,348 in 2026; a government draft proposes €12,564 for 2027. When pensions rise faster than the allowance, more pensioners become taxpayers, and if your taxable income is above it you generally have to file a tax return. If you also receive a pension from another country, it may count towards your German tax rate; check the relevant tax treaty.
7. Mütterrente III: more for children born before 1992
Under the 2025 pension package, parents of children born before 1992 receive the same child-raising credit as for younger children. Existing pensioners receive a supplement of 0.5 pension points per such child from 1 January 2027. At today’s pension value that is €21.26 gross a month per child.
According to Deutsche Rentenversicherung, the supplement applies from 2027 but is paid only from 2028, with a back payment for 2027. For new pensions from 2028, 36 instead of 30 months of child-raising time are credited. If the pension value rises on 1 July 2027, the supplement rises with it.
8. Your pension in your own plan
For planning, a single increase matters less than how pension, spending and inflation develop over decades. Use a cautious assumption and check what a higher or lower adjustment changes. The German retirement age calculator shows the earliest date you can retire. If you keep working past the standard retirement age, read about the Aktivrente.
In Zenarios you enter pension points or your own pension amount, set an annual adjustment and see whether your plan lasts to the end. The app needs no account. Its rules are simplified; only your pension statement from Deutsche Rentenversicherung is binding.
Work it out with your numbers
Common questions
How much will German pensions rise in July 2027?
The figure is not set yet. The 2025 pension insurance report modelled a pension value of €44.32 for July 2027, but from an assumed 2026 value. Measured against the actual €42.52, that would be roughly 4.2%. The binding figure will be announced in spring 2027.
How much did pensions rise in 2026?
On 1 July 2026 the current pension value rose by 4.24%, from €40.79 to €42.52 per pension point. Without the 48% floor on the pension level, the formula would have given 4.05%.
Is the pension increase taxable?
Yes, in full. The tax-free part of a statutory pension is fixed as a euro amount in the year after the pension starts, and regular adjustments do not change it. Whether tax is actually due depends on your total taxable income.
When is Mütterrente III paid?
Existing pensioners receive 0.5 extra pension points per child born before 1992 from 1 January 2027. According to Deutsche Rentenversicherung, it is paid out from 2028 with a back payment for 2027.
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Try Zenarios in your browserWritten by the maker of Zenarios, a software engineer. These guides explain planning concepts and the product; they are not a personalized financial recommendation. Illustrative calculations are not results from your plan.