Spiegel Deutschland51 minutes agoBusiness2 min readGermany

Court of Auditors warns of budgetary strain due to rising pension costs

Quick Look

The Federal Audit Office warns that the planned pension reform could result in up to 46 percent of tax revenue being used for pensions, which would place a one-sided burden on the federal budget.
The rate is currently around 29 percent, and the coalition's first pension package could cause follow-up costs of 210 billion euros by 2040.

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Why It Matters

The Federal Audit Office has presented a report that warns of the financial consequences of the planned pension reform. Currently, around 29 percent of tax revenue is used for pensions; according to the report, this share could rise to up to 46 percent. The coalition's first pension package from 2025 could cause follow-up costs of 210 billion euros by 2040.

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Reform debate Court of Auditors warns of budget burdens due to rising pension costs

The planned reforms could mean that almost 46 percent of tax revenue could be used for pensions. The auditors warn that the budget could be too one-sided.

October 2, 2026, 8:36 p.m

What to Watch

AI outlook — possibilities, not facts

The federal budget will be burdened more by pension costs by 2040 if the planned capital pension is delayed or generates low returns.
Likely · Within months
The follow-up costs of the coalition's first pension package will total 210 billion euros by 2040, as estimated by the Court of Auditors.
Very likely · Within years

Open Questions

How exactly should the planned capital pension be financed?
What specific changes is the federal government planning to make to the Old Age Security Commission?
How will the abolition of the 'pension at 63' affect the labor market situation of older workers?