Germany forecasts a 4.1% pension increase in 2027 — Der Spiegel

In Germany, 21 million pensioners insured under the statutory pension insurance system may receive a 4.1% increase in payments from July 1, 2027. The federal government included this forecast in the draft 2026 pension insurance report, Der Spiegel reports.

Preliminary calculation

The figure is preliminary: data for adjusting pensions in the summer of 2027 are expected to be available in March 2027. The first estimate, made in autumn 2025, projected growth of 3.7%. At the same time, an increase of 4.4% was forecast in the summer.

With a 4.1% increase, a monthly pension of 1,000 euros will rise by 41 euros. In July 2026, pension payments in Germany had already increased by 4.24%.

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Contributions in 2027

A key factor in calculating pension indexation is the forecast trend in wages. The amount of the increase is also affected by setting a minimum pension level, which the coalition approved during the first pension reform at the end of 2025.

Until 2031, the pension level must not fall below 48% relative to income. The contribution rate to the statutory pension insurance system in 2027 is forecast to remain at 18.6% of gross income. It is projected at 19.7% in 2028 and 21% in 2040.