Pensions will rise more sharply than predicted from July. This is not just good news for those receiving old age pensions. Who will benefit from the higher pension value in 2026.
The so-called pension value is a key figure for the amount of the pension payment. Because it largely determines how much money ends up in the account each month. As of July 1, 2026 pensions rise by 4.74 percent. The pension value increases from the middle of the year.
The pension value, as the central calculation variable of the statutory pension insurance, determines how much a salary point is worth. The monthly pension essentially results from a simple formula:
Pay points × current pension value × other factors = monthly pension
If the pension value increases, the payout automatically increases for everyone whose pension is calculated using this formula. This is exactly what happens regularly on July 1st of each year. And that doesn’t just apply to old-age pensions.
For whom the pension will increase from July 2026
From July 1, 2026, a statutory standard pension will increase by 77.85 euros per month. The pension value climbs from the current 40.79 euros to 42.52 euros. The adjustment is automatic and pensioners do not have to apply for anything.
The plus applies to all benefits from the statutory pension insurance, the amount of which depends on the pension value. These include, among others:
- Old age pensions
- disability pensions
- Survivors’ pensions such as widows’, widowers’ and orphans’ pensions
- Education pensions
The calculation of the current pension value is based on the so-called wage factor. The change in average wages and salaries per employee in previous years is relevant for the pension adjustment in one year. If wages rise, pensions will follow.
In addition, changes in contribution rates in the social insurance branches are taken into account when adjusting pensions. For example, if the net share of wage income falls faster than the net share of pensions, the pension adjustment will be dampened.
Those who do not benefit from the higher pension value
Not all retirement benefits in Germany are linked to the pension value. That’s why the July increase doesn’t apply in every case. The following are not affected by the increase:
- Civil servants with pensions
- Recipients of company pensions
- Recipients of private pension insurance
These benefits follow their own rules and are increased regardless of the statutory pension adjustment.
Anyone who receives an increase from July 2026 will be informed of the new amount in the pension adjustment notice. Shipping is expected to take place in June and July 2026. The exact date has not yet been determined. The letter also states when the new amount will be paid out.
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