Pensioners can probably expect a significant increase in 2027 too

Pensioners can probably expect a significant increase in the coming year. The chairwoman of the Federal Board of the German Pension Insurance, Anja Piel, explained this on Tuesday in Würzburg and referred to corresponding forecasts.

This year, pensions have increased by an average of 4.24 percent. She expects a similar magnitude, says Piel. The adjustment will finally be available next spring when the wage data is available. At the same time, she warned of further cuts in federal subsidies for pension insurance.

It was previously known that the Federal Ministry of Labor was also planning an increase of 4.09 percent on July 1, 2027. This emerges from the draft of the federal government's new pension insurance report.

According to the data, the contribution rate for pension insurance will remain stable next year at 18.6 percent of gross wages. From 2028 onwards, however, employees and employers as contributors will have to prepare for significant additional burdens. The draft shows that the contribution rate will then increase by 1.1 percentage points to 19.7 percent.

A further increase to 19.8 percent is expected for 2029. However, due to the improved economic outlook, these values ​​are slightly better than previously expected. In the spring, the German pension insurance forecast an increase in contributions to 19.9 percent in 2028 and to 20 percent in 2029.

The information on the pension adjustment in 2027 is still preliminary. The Federal Ministry of Labor usually determines the exact values ​​in March when the final statistical data is available.

In principle, pension adjustments are based on general wage developments. The increase will be reinforced by the “pension holding line” decided by the governing coalition in 2025, which is to apply until 2031.