German Pension Rules Tighten Early Retirement Options, While Austrians Fear Insufficient Savings

From 2026 Germany will end the transitional protection that allowed some disabled workers to retire early with reduced penalties. Under the new fixed rule (§ 37 SGB VI) a disability rating of at least 50 % and 35 years of contributions are required. Early retirement is possible from age 62, but a permanent reduction of up to 10.8 % of the pension will apply.

For other retirees, those born in 1963 can still retire before 67 without deductions if they have 35 qualifying years. People born in 1964 or later must wait until 67, although they may choose to retire at 63 with a discount that cannot exceed 14.4 %.

The statutory maximum pension in Germany is €3,589 per month (rising to €3,742 in July 2026). Only about 0.0002 % of retirees receive more than €3,000, and the top 10 % of earners receive roughly €3,500.

A separate survey in Austria shows that 62 % of respondents worry their retirement income will be insufficient and half expect to keep working after retirement. About 53 % have already made private provisions, favouring employer pensions (38 %), savings accounts (35 %) and ETFs (29 %). Many feel overwhelmed by the variety of financial products available.