Elderly care demand rises amid aging population in Germany and Austria

As life expectancy rises in Germany and Austria, the aging population—driven largely by the baby boomer generation—is placing increased pressure on healthcare and social systems. In Germany, approximately 5.7 million people currently require care, many of whom are supported at home by relatives or volunteers.

Following the 2023 nursing reform, care allowance (Pflegegeld) rates were adjusted. For 2025 and 2026, the monthly amounts based on care levels are as follows:

• Care Level 2: 347 Euro • Care Level 3: 599 Euro • Care Level 4: 800 Euro • Care Level 5: 990 Euro

There are currently no planned increases for 2026. The growing demographic shift presents challenges including a shortage of skilled workers, increasing rates of dementia, and the need for new care concepts to allow seniors to live independently in their own homes for as long as possible.