Pension increases from July: What seniors now need to know!

Pension increases from July: What seniors now need to know!

InFranken, Deutschland - On April 30, 2025, the Federal Cabinet decided to increase the pension for the coming year. From July 1, 2025, the pension will increase by 3.74 percent, subject to the approval of the Federal Council, which will take a decision in June 2025. This adjustment is communicated to the pension recipients in the communications between June 14 and July 23, 2025, whereby the pension service of Deutsche Post AG is responsible for sending the letters, such as Infranken reported.

The amount of the pension adjustment is strongly linked to the economic situation and wage development, so that the pensioners can continue to participate in the wage development of the employees. The current pension value is increased by this adjustment from 39.32 euros to 40.79 euros. This increase will mean an increase of around 66.15 euros a month for a standard pension for average earnings and 45 years of contribution, as also from German Pension Insurance was found.

Details on pension adjustment 2025

The pension adjustment 2025 is not only determined in terms of the percentage increase, but also influenced by various factors. The calculated wage development is 3.69 percent, which forms the basis for the increase. The security level before tax is 48.0 percent, which means that the pension values ​​are bound to the minimum security. The pension adjustment formula, which was supplemented by a level protection clause, ensures that the pension level cannot drop below 48 percent.

The Federal Council will decide on June 13, 2025 on the pension value provision regulation, which will then come into force on July 1, 2025. This regulation ensures that the legal pensions are adequately adjusted, which is particularly important in the current economic situation. The increase is expected to be above the current inflation rate, which is a positive development for the seniors. Nevertheless, in July 2025, these must expect additional expenses that could possibly reduce the pension increase, such as BMAS

As in previous years, the pension calculation is also influenced by the earnings points of the acquired pension entitlements. The changes in the amount of the pension values ​​reflect the development of wages and the minimum security level. These basics of pension determination are checked and adapted once a year to ensure a fair and reasonable standard of living for pensioners.