Pensions in Germany: All about Bundestag reform, maternity pensions and tax-free earnings
Pensions in Germany are entering a new phase after the Bundestag adopted a comprehensive reform package. For those of us living in Munich, Frankfurt or Hamburg, this is not just news in the newspapers – this is a direct impact on our wallets and our old age. While pension systems are floundering at home, Germany is taking steps to ensure that retirement does not become a handout, but the result of decent work.
As someone who follows labor market trends, I see this reform as a response to the real problem of aging society. The "baby boomers" are leaving, and those of us who remain need to know where we stand.
1. Why was pension reform in Germany inevitable? (ApA insight)
Germany is facing a demographic wall. There are fewer and fewer young workers and more and more pensioners. Without this reform, pensions would fall to a level that would push many of our people, who have spent their entire lives “on the construction site” or in factories, to the brink of poverty. This law attempts to maintain a magic threshold of 48% average salaries.
2. Pensions in Germany and stabilization at 48 percent
This is the heart of the reform. The Bundestag has decided that pensions will not fall below the 48% average salary until 2031.
- An example that hurts: Without this measure, a pension of €1,500 would be about €35 less per month. Maybe that sounds small to someone in the government, but for our man, it's €420 per year – just enough for a car registration or a trip to Sarajevo.
- East vs. West: It is especially important for East Germany where as many as 74% people rely exclusively on the state pension.
3. Pensions in Germany for mothers - The recognition we've been waiting for
This is the part of the text that will interest our mothers and grandmothers the most. From 2027, three years of raising a child will be recognized for everyone, regardless of the year of the child's birth.
- End discrimination: Previously, the dates determined how many points the mother would receive. Now the injustice is being righted. For women in the diaspora who have balanced work and raising children in a foreign country, this is a well-deserved recognition of "invisible work".
4. Active pension in Germany: Work without tax impact
This is a revolution for those who feel good and want to work even after the age of 67.
- The 2000 Euro Rule: From January 1, you will be able to earn up to €2,000 per month without taxes with your regular pension!
- Why is this important? Germany lacks workers, and our people often lack activities and money. Now you can work for your former employer, pass on your knowledge to younger people and keep all the money you earn for yourself. That's it Active retirement in the truest sense of the word.
5. Pension Contributions in Germany: Who Will Pay for It All? (Honest Analysis)
We have to be professional and tell the truth – someone has to pay for this. We are currently paying 18.6% gross salary for pension.
- Forecast: Contributions are expected to grow. By 2030, they could reach 20%, and by 2040 even 21.4%.
- Advice for younger people: If you're in your 30s or 40s, don't rely on the state alone. The company (Betriebliche Altersvorsorge) must be your second pillar of defense.
6. Pension savings for children - Investment in the future
An interesting novelty is the €10 per month for children aged 6 to 18. It is a symbolic amount, but it teaches children the importance of saving. From the age of 18, this money can be invested privately at a favorable interest rate. It is a long-term game that Germans have been playing for decades.
7. ApA Roadmap: Health as a condition for retirement
All the reforms are for nothing, 2000 euros tax-free if you reach the age of 67 sick and exhausted. As we wrote in the article about stress and injustice, chronic stress kills immunity.
- How to wait for an active retirement? You have to invest in your body while you work. Quality nutrition, movement and natural support like Aloe Vera Gel are not a luxury, but an investment so that you can enjoy the fruits of your labor tomorrow. Retirement is not the end, it is a new beginning - but only if your legs and back listen to you. 👉 Aloe Vera - Your ally for vitality in retirement https://apachannel.com/aloe-vera-gel-probava-imunitet-i-kako-ga-koristim-apa-vodic/
8. Table: Pensions in Germany – What is changing?
| Area | Before the reform | After the reform (2025/2026) |
| Guaranteed height | Threatened to fall to 47% | Guaranteed 48% until 2031. |
| Maternity pensions | Dependent on year of birth | 3 years for each child (from 2027) |
| Work after 67. | Taxed, complicated | Up to €2,000 per month WITHOUT TAX |
| Pension contributions | 18.6% (stable for years) | Expected growth according to 20% after 2027. |
| Savings for children | It didn't exist. | Planned €10 per month for schoolchildren |
9. German pensions What awaits us in 2026?
The new pension commission, which will also include young people, will make new proposals by mid-2026. It will discuss what has been taboo until now:
- Will we work longer than 67?
- Will civil servants (Beamte) also enter the same system? Stay with ApA-Channel, because we will follow their every move.
APA Questions for Readers:
- Are you looking forward to the opportunity to work tax-free after 67, or can't wait to "hang up your boots"?
- Do you think that the increase in contributions in 2013 is a fair price for pension stability?
- Have you checked your pension points for children in German pension insurance (Deutsche Rentenversicherung)?
Pension is not charity.
Pension is the result of your sweat, your sleepless nights abroad and your contribution to society. This reform in Germany gives us a little more security, but real security comes from knowledge and self-care. Don't let the system surprise you - get informed in time!
