File 01 · Pensions
In force 1 Jan 2026Pension package 2025 (Rentenniveaustabilisierungsgesetz)
The problemWithout legislation the pension level would have fallen below 48 per cent of average earnings as baby-boomers retire.
The policyPension level held at 48 per cent until 1 July 2031; Mütterrente III from 2027; removal of the ban on re-employing former employees past retirement age.
Who it affectsCurrent and near-retirement pensioners; parents (mostly mothers) of children born before 1992; contributors who finance it.
Expected impactPensions about one point higher than otherwise after 2031, at a cost estimated up to €15bn a year.
CriticismThe CDU/CSU “Junge Gruppe” objected to the long-term costs; 7 Union MPs voted no. Economists questioned sustainability.
Current statusPassed 5 Dec 2025 (318 votes), Bundesrat 19 Dec 2025, in force.
