To maximize it, you need to accumulate as many “pension points” as possible during your working life. Your income is the decisive factor here. In 2026, a single pension point will be more expensive than ever before. Social law experts warn that this could leave some employees more vulnerable to old-age poverty.
Pension Point Becomes More Expensive in 2026
The number of accumulated pension points determines the amount of the statutory pension. A full pension point is based on the annual average salary. To find out how many pension points you earned in a given year, you divide your own income by the average income for that respective year: the result is the number of pension points earned.
Next year, the “average annual remuneration” will rise from the current €50,493 gross to €51,944 gross, as announced by the Federal Ministry of Labour and Social Affairs (BMAS). This represents a significant increase of 10.32 percent compared to 2024. Because wages rose sharply by 5.16 percent in 2024, the cost of a pension point increased by 7.1 percent the following year, and will rise by a further 2.97 percent in 2026.
For all insured persons, this means they will acquire a full pension point if their average earnings are €51,944. A pension point amounts to 18.6 percent of gross earnings, costing €9,670.58. Consequently, the pension point value will rise from the current €40.79 to €42.17 starting in July 2026.
Losers in this increase are those employees whose wages rarely change. The 2026 adjustment also means that low-income earners, part-time workers, and young employees whose wages remain unchanged will receive fewer pension points than in the previous year. Furthermore, contributions are becoming more expensive, making full contribution years more costly for the self-employed, warns the non-profit organization “Für soziales Leben e.V.”
More Expensive Pension Point: Potential Pension Reduction of Several Hundred Euros
The association points out that without income increases compared to 2025, the same work performance will yield fewer pension points. These changes can lead to a reduction in the pension amount, potentially amounting to several hundred euros. This is because, although the cost of a pension point is rising significantly, the pension value itself is increasing at a comparatively slower rate.
In July 2026, pensions are expected to rise by approximately 3.3 to 3.37 percent. Social law experts warn of a resulting tax trap for pensioners. If the gross pension exceeds the basic tax-free allowance, which is expected to be €12,348 for single individuals in 2026, seniors must file a tax return. If additional contributions for health insurance also rise in 2026, the net pension will be further diminished, cautions the organization “Für soziales Leben e.V.”
Latest Posts
