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Court Upholds Disability-Pension Cutoff as Germany Debates How to Rebalance Retiree Pay

A non‑retroactive disability reform leaves millions with less money.

Overview

  • Germany’s top social court confirmed that people on disability pensions granted before 2019 will not get the newer crediting rules that add extra working years to the calculation.
  • About three million beneficiaries will keep monthly payments roughly €50 to €200 below newer cases even after a percentage top‑up added in 2024, according to reporting on the ruling.
  • The debate over who should gain or give up has sharpened, with SPD politician Karl Lauterbach urging caps on high‑earner pensions and a senior CDU figure stressing flexibility as the 48 percent floor for the system through 2039 remains in law.
  • New figures show old‑age pensions for people with a severe disability averaged €1,302 in 2023 versus €1,172 for long‑term insured workers because earlier retirement in the disability track comes with smaller cuts.
  • Rising use of housing aid highlights tight retiree budgets, with nearly 700,000 pensioners receiving Wohngeld after a 2023 expansion and asset thresholds guiding eligibility unchanged in 2026.