At the beginning of 2026, a number of important adjustments will take effect in Germany’s statutory pension system. The reforms affect retirement ages, disability pensions, contribution limits and taxation. Below is a clear and practical overview of the key changes.
Contribution Rate Remains Unchanged
The contribution rate to the statutory pension insurance will remain stable at 18.6 percent in 2026. It has now been unchanged for nine consecutive years. In the miners’ pension insurance scheme (Knappschaftliche Rentenversicherung), the contribution rate continues to be 24.7 percent.
Regular Retirement Age Continues to Increase
Germany is gradually raising the statutory retirement age from 65 to 67 by 2031.
For those born in 1961, the regular retirement age is 66 years and 6 months. For each subsequent birth cohort, the retirement age increases by two months. Individuals born in 1964 or later will reach the standard retirement age at 67.
This gradual adjustment reflects demographic developments and longer life expectancy.
Retirement for Particularly Long-Term Insured Persons (45 Years of Contributions)
The retirement age for the pension without deductions for particularly long-term insured persons is also being raised step by step from 63 to 65.
People born in 1962 can retire without deductions at 64 years and 8 months. For each later birth cohort, the age limit increases by two months. For those born in 1964 or later, the minimum age will be 65.
This type of pension requires at least 45 years of qualifying contributions in the statutory pension insurance system.
Early Retirement with 35 Years of Contributions
Individuals with at least 35 years of contributions may claim an old-age pension from the age of 63. However, this option involves permanent reductions.
The deduction amounts to 0.3 percent per month of early retirement. As the statutory retirement age rises, the total deduction increases accordingly.
For example, a person born in 1963 who turns 63 in 2026 has a regular retirement age of 66 years and 10 months. If they retire at 63, the pension will be reduced by 13.8 percent.
Disability Pensions: Higher Earnings Limits and Improved Protection
From January 2026, the annual additional earnings limits for disability pensioners will increase:
- For a full disability pension: approximately 20,700 euros per year
- For a partial disability pension: at least approximately 41,500 euros per year
This allows recipients to earn more without risking a reduction in their pension.
In addition, the so-called “crediting period” (Zurechnungszeit) will be extended. This mechanism treats recipients as if they had continued working and paying contributions until the regular retirement age.
Since the retirement age is gradually increasing, the crediting period will also extend. For pensions beginning in 2026, it will end at 66 years and 3 months instead of 66 years and 2 months. This additional month leads to a slightly higher pension.
Minijobs and Midijobs
The Minijob income limit will rise from 556 euros to 603 euros per month in 2026. This adjustment follows the increase in the statutory minimum wage, which will rise to 13.90 euros per hour.
Short-term employment in agriculture will also be extended to 15 weeks or 90 working days.
From 1 July 2026 (expected), Minijobbers who previously opted out of paying pension contributions will be able to revoke this exemption once. The change will apply only for the future and must be requested from the employer. If someone holds several Minijobs, the decision must apply uniformly to all of them.
The lower income threshold for Midijobs (employment in the transitional earnings range) will increase to 603.01 euros. The upper limit remains unchanged at 2,000 euros per month. Employees in this range continue to benefit from reduced social security contributions, while pension entitlements are calculated based on full earnings.
Higher Contribution Assessment Ceiling and Reference Values
The contribution assessment ceiling will increase from 8,050 euros to 8,450 euros per month in 2026. Income above this level is not subject to pension contributions.
The preliminary average annual income used to calculate pension points will rise to 51,944 euros (2025: 50,493 euros).
The annual reference value will increase to 47,460 euros (3,955 euros per month). This figure is relevant, for example, for calculating contributions for certain self-employed persons.
Voluntary Contributions
From 1 January 2026, the minimum monthly voluntary contribution will increase to 112.16 euros, and the maximum monthly contribution to 1,571.70 euros.
Voluntary contributions for 2025 can still be paid until 31 March 2026.
Eligible persons include individuals aged 16 or older who are not subject to compulsory insurance, as well as German nationals living abroad. Early retirees may also make voluntary contributions until they reach the regular retirement age. However, persons who have already reached the regular retirement age and receive a full old-age pension are excluded.
Taxation of New Pensions
In 2026, the basic tax-free allowance will rise to 12,348 euros.
At the same time, the taxable portion of pensions for new retirees will increase. Anyone who begins receiving a pension in 2026 must pay tax on 84 percent of their pension. The remaining 16 percent of the first full annual gross pension remains permanently tax-free.
For each new retirement cohort, the tax-free portion decreases by 0.5 percentage points. By 2058, pensions for new retirees will be fully taxable. Existing pensions are not affected by this change.
Artists’ Social Insurance Levy
The contribution rate for the artists’ social insurance levy (Künstlersozialabgabe) will decrease slightly from 5 percent to 4.9 percent in 2026.
Overall, the 2026 changes continue the long-term restructuring of Germany’s pension system. While contribution rates remain stable, retirement ages, income thresholds and tax rules are gradually adjusted. Anyone approaching retirement should review their individual situation carefully in order to plan accordingly.