Experts predict that the economic recovery in Germany in the coming year will lead to a noticeable increase in state pensions. Oliver Holtemöller, head of the IWH Business Cycle Department, stated to the “Bild-Zeitung” that the Leipzig Institute for Economic Research in Halle (IWH) anticipates a rise of nearly five percent, specifically projecting a 4.7 percent increase in pensions based on their current calculations.
Similarly, Deka Bank expects a pension increase exceeding four percent, effective July 1, 2027. Ulrich Kater, the bank’s chief economist, affirmed that the raise would be significant and found the discussion of a percentage over four percent to be realistic. Both Holtemöller and Kater cited the relatively strong growth in employee income this year as the fundamental basis for the 2027 pension adjustments.
The German Pension Insurance (Deutsche Rentenversicherung) maintained its previous forecast, informing the “Bild-Zeitung” that it anticipates a pension increase of 4.4 percent. A 4.7 percent raise in the West would represent the largest increase since 2022. In 2022, pension benefits were increased by 5.35 percent in the West and 6.12 percent in the East. In 2023, the change was lower in the West at 4.39 percent, but notably higher in the East at 5.86 percent.
