Breaking News for Retirees: Pension Increase and Long-Term Care Insurance Adjustments
Enhanced monetary allocations for pensioners - a select group set to receive additional funds in June
It's a win for retirees! As of July 1, 2025, legal pensions are anticipated to increase by 3.74 percent. This rise is due to the development of wages. If wages surge, the lawmaker boosts pensions so seniors can keep up. In June 2025, an essential change is in store for retirees, but not for everyone.
Long-term Care Insurance Modifications: What Retirees Need to Know
There's been a change in the contribution rate for long-term care insurance financing. Back in July 2023, the rate increased from 3.05 percent to 3.4 percent. Childless members aged 23 and older faced an additional 0.6 percent contribution. However, parents with more than one child under 25 years of age benefited from discounts on the contribution rate. Presently, the rate stands at 3.6 percent; with the additional contribution for childless members, it reaches 4.2 percent.
Long-term Care Insurance Contributions in Retirement
Zusätzliche Kinder unter 25 Jahre
Retirees shoulder the contribution to long-term care insurance on their own. Contributions for all retirees who are members of the statutory long-term care insurance are paid together with the contributions to statutory health insurance directly from the German Pension Insurance to the health insurance company.
Bonus auf den Beitrag zur Pflegeversicherung
The DRV shifted retirees to a new contribution tier, which should have happened automatically. Retirees with more than two children under 25 should have received a discount on their contributions starting July 2023. Unfortunately, the pension insurance couldn't factor in these discounts initially, leading to a continued 3.4 percent contribution rate.
Savings for Retirees: How Much Can They Expect?
Zweites Kind
The German Pension Insurance adjusted long-term care contributions for specific retirees starting April 2025. This move was meant to compensate for the previously missed adjustments in long-term care insurance. Retirees will receive a written notification for this. "The contribution discounts for parents with at least two children under 25 years of age will be taken into account upon first-time pension award starting April 2025." - German Pension Insurance.
0,25 Prozent
This translates to retirees with at least two children under 25 getting their long-term care contributions refunded since July 2023. The repayment is scheduled to be completed by the end of June 2025. The exact refund amount can vary from case to case.
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Zweites und drittes Kind
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Zusammen 0,5 Prozent
The DRV offers a roughly 60 euros refund for each additional child, considering the child under 25, over a 24-month calculation period. This refund is interest-bearing at four percent. Since 2023, a bonus for parents with at least two children has been in place, structured as follows:
| Additional Children under 25 years | Bonus on the contribution to health insurance ||------------------------------------|-------------------------------------------|| Second Child | 0.25 percent || Second and Third Child | Together 0.5 percent || Second, Third, and Fourth Child | Total 0.75 percent || From the second to the fifth Child | Together 1.0 percent |
Zweites, drittes und viertes Kind
With up to 1 percent savings possible on the general contribution rate, this move aims to ease the financial burden on parents with multiple children during active child-rearing.
insgesamt 0,75 Prozent
Pension Letter Clarifies Savings - Reach out if Missing
Though the system is automated, delays and errors can occur. "The German Pension Insurance queries the number of children from the tax office and automatically takes this into account." - German Pension Insurance. Beneficiaries also receive a separate notification. If you have two children under 25 years old and have not received a notification by autumn 2025, you should contact the German Pension Insurance in writing.
Ab dem zweiten bis zum fünften Kind
- The adjustments in long-term care insurance contributions have benefits for retirees, as parents with at least two children under 25 will receive a discount on their contributions, starting April 2025.
- In personal-finance matters, the development of wages influences legal pensions, with an anticipated 3.74 percent increase for retirees as of July 1, 2025. This rise is meant to help seniors keep up with ongoing expenses.
