Mütterrente Expansion Sparks German Pension Debate

The Mütterrente expansion, aimed at aligning child-rearing credits for women born before 1992, is set to boost pensions and spark debate in Germany.

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2025 October 31 . 5:01 PM

1 min read

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Pensions could rise by 3.7 percent again - Mütterrente Expansion Sparks German Pension Debate

The Mütterrente (mother's pension) expansion has sparked debate in Germany. CSU Secretary-General Martin Huber dismissed demands to scrap it, while Employers' Association President Rainer Dulger urged its abandonment. The German Social Association and SPD support the expansion, set to take effect in 2027.

The Mütterrente expansion aims to align child-rearing credits for women who gave birth before 1992, boosting their pensions. The third phase is estimated to cost around five billion euros annually, dropping to four billion by 2040. Huber dismissed criticism as 'absurd', citing massive investments in other areas.

Pensioners may see a 3.7 percent increase in 2026, though this estimate can vary until the official spring season decision. Pensions in Germany are typically adjusted in July, based on wage developments. The precise confirmation of the 2026 adjustment will come in spring that year, as decided by the federal cabinet. The SPD rejected employers' objections, stating the Mütterrente is part of a comprehensive pension package.

The Mütterrente expansion, set for 2027, faces criticism from employers but support from social associations and the SPD. Pensioners can expect an estimated 3.7 percent increase in 2026, with the exact figure confirmed in spring 2026.