Millions of German retirees will see a reduction in their monthly payments starting in March 2026, due to increases in statutory health insurance contributions. Thirty-five health insurance funds increased their additional contributions as of January 2026, a change that will be reflected in pension payouts two months later.
Impact on Pension Payments
The Deutsche Rentenversicherung (German Pension Insurance) processes the increased health insurance contributions with a two-month delay due to technical requirements outlined in § 247 SGB V. This means retirees will see the impact of the January increases reflected in their March 2026 pension statements, and may also receive retroactive adjustments.
Rising Healthcare Costs
The Federal Ministry of Health has set the average additional contribution for 2026 at 2.9 percent, up from 2.5 percent the previous year. Individual health insurance funds determine their specific contribution rates, ranging from 2.18 percent to 4.39 percent, while the general contribution rate remains at 14.6 percent. Both pensioners and the Deutsche Rentenversicherung share the cost of contributions equally.
How Much Will Retirees Pay?
The financial impact varies depending on the individual’s health insurance fund and pension amount. For example, DAK-Gesundheit increased its additional contribution from 2.8 percent to 3.2 percent. This translates to an additional 3.40 euros per month, or 40.80 euros per year, for a retiree receiving the average gross pension of 1,692 euros (as of late 2024).
As a general rule, a one percentage point increase in the additional contribution results in a 0.5 percent increase in the amount deducted from a retiree’s pension. Here are some examples:
- Pension of 1,000 euros: 5 euros less per month (60 euros per year)
- Pension of 1,500 euros: 7.50 euros less per month (90 euros per year)
- Pension of 2,000 euros: 10 euros less per month (120 euros per year)
Potential Savings Through Switching Funds
Retirees may be able to mitigate these increased costs by switching health insurance funds. Switching from a more expensive fund with a 4 percent additional contribution to the least expensive fund could save approximately 18 euros per month, or 216 euros per year, for a retiree receiving a pension of 1,692 euros. However, it’s crucial to consider additional benefits offered by different funds, such as dental cleanings or osteopathy, when making a decision.
Frequently Asked Questions
When will the increased contributions take effect?
The increased contributions, which were implemented in January 2026, will be reflected in pension payouts starting in March 2026.
Who is affected by these changes?
Millions of retirees with statutory health insurance will be affected by these changes.
Is it possible to switch health insurance funds to reduce costs?
Yes, retirees can switch health insurance funds, and doing so may result in savings, but it’s important to consider additional benefits offered by different funds.
As healthcare costs continue to rise, how will these changes impact the financial security of German retirees in the long term?
