Plans for higher deductions for early retirement

Compensation for savings More deductions for early retirement? As of: November 14, 2026 • 4:37 p.m

The government's savings are hitting the pension insurance more than planned - and this raises the question of how the losses can be compensated. The CSU is now bringing higher deductions into play for early retirees.

The federal government transfers almost 100 billion euros in tax funds annually to the pension insurance system. The federal subsidy is used to pay for tasks that politicians have delegated to the pension fund - for example, costs of German unity or the mother's pension. Next year, the federal government will cut this federal subsidy even more significantly than previously planned - not just by one, but by three billion euros.

“The cuts in recent years now add up to eleven billion euros,” says Gundula Rossbach, head of the German Pension Insurance, about the renewed savings. The pension insurance appeals to the federal government: “Anyone who transfers tasks for society as a whole to the pension insurance should also pay for them.”

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A foreseeable consequence of the greater cuts: the pension insurance's financial reserves will decline more quickly. In 2028, the contribution rate of 18.6 percent, which has been stable for many years, will have to rise more significantly than previously thought - "probably to 19.8 percent," says Rossbach.

CSU regional group leader Alexander Hoffmann explained how the federal government wants to further reduce costs beyond the planned pension reform. He told the editorial network Germany that if you retire earlier, the deductions should increase from 0.3 to 0.4 percent per month. This is overdue, says Hoffmann.

Opinions about the timetable for the reform also differ among the parliamentary group leaders of the Union and SPD. more

It is currently possible to bring forward your old-age pension by up to four years. About one in three pensioners uses this. 0.3 percent of the retirement pension is deducted for each early month. For pensioners aged 63, this adds up to up to 14.4 percent, which means the pension will be lower - for life. With the CSU regional group leader's initiative, this minus would be much more significant at 19.2 percent. And this is likely to reduce the number of people who take advantage of this early pension with higher deductions.

When should this apply? Ideally for the 2027 financial year, said CSU politician Hoffmann. The Federal Ministry of Labor will present a concrete schedule.

In particular, “political debates still need to take place” about “pension at 63,” said the SPD politician. more

However, a spokeswoman in the ministry simply said: "The draft of a budget accompanying law for 2027 does not contain any regulations on deductions or surcharges in pension insurance. This question will have to be discussed as part of the implementation of the recommendations of the Old Age Security Commission." Increasing the deductions for early pensions was expressly not an idea of ​​the Old Age Security Commission, whose recommendations the federal government is currently making into a pension reform.

This topic in the program: tagesschau.de | Pension insurance - deductions up, federal subsidy down | 11/14/2026 | 3:00 p.m