Editorial of the Annual Report of the German Pension Insurance

Dear Readers,

Despite the uncertain political situation and the weakening economy, German Pension Insurance maintained a stable financial position in 2024. A high level of employment in conjunction with wage increases drove up contribution revenue to 305.9 billion euros, which represents a 5.6 per cent year over year increase.

The demise of the traffic light coalition under Chancellor Olaf Scholz before the end of its term prevented the implementation of a number of planned pension reforms, including Pension Package II [Rentenpaket II]. The same applies to the initiative on mandatory contributions into pension schemes for self-employed individuals. However, there was good news for pensioners, whose pension benefits increased by 4.57 per cent on 1 July 2024. Reduced earning capacity pension recipients also benefited from an upward pension adjustment in July 2024.

With regard to digitalisation, the German Pension Insurance is continuing its efforts to modernise the pension administration system and take it forward into the digital age. One of the key projects in this area is DigitalCheck, a tool for reviewing the digital compatibility of proposed legislation at an early stage, well before it is implemented. Existing digital services such as the Digital Pension Overview and the Customer Portal have also received positive feedback.

This report sets out the activities and developments of the German Pension Insurance during 2024.

We wish you an insightful and inspiring read.