German pension for people born in 1960
If you were born in 1960, 2026 is the year of the last choice: leave now with a small reduction, wait for the standard date, or work on.
Worked through by Radif Partners · Editorial policy · How we calculate
Earliest pension start
1 July 2023
at 63 years, reduction 12.0 %
| Standard pension | 1 November 2026 |
|---|---|
| Long-term insured (35 yrs) | 1 July 2023 · −12.0 % |
| No reduction from | 1 November 2026 |
| Pension at earliest start | €1,408 |
If the commission proposal became law
Earliest 1 July 2024 (12 months later), reduction 8.4 %; no reduction from 1 November 2026.
Scenario without transitional rules. No draft bill published; current law applies.
Step-by-step calculation
- Standard retirement age for people born in 1960: 66 years 4 months (section 235(2) SGB VI). Start on 1 November 2026, the month after you reach that age (section 99 SGB VI).
- With 40 years the 35-year qualifying period is met: from 63 at the earliest, minus 0.3% for each month before the standard age (section 77 SGB VI).
- Commission proposal (not law): without the 45-year pension and with a minimum age of 64, the earliest start would be 1 July 2024 with a 8.4 % reduction.
Estimate under SGB VI and the Income Tax Act as of October 2026, not advice. Only your pension decision letter is binding. How we calculate
If you were born in 1960, 2026 brings you close to the finish line of the German statutory pension. The standard retirement age (Regelaltersgrenze) for this cohort is 66 years 4 months (section 235 SGB VI); with a birthday on 20 September 1960 the standard pension starts on 1 February 2027. The earlier routes are already open: after 35 insured years you could start from 1 October 2023, at that point with a 12.0 % reduction (Abschlag) for 40 months; after 45 years an unreduced pension has been available since 1 February 2025, at 64 years 4 months. If you are still working with 35 years, each month before the standard date costs 0.3 %: starting on 1 November 2026 means 0.9 % off, so €1,500 becomes €1,486.50. For a 2026 start 84.0 % of the pension is taxable, for 2027 84.5 %. All dates of this cohort fall before 2031, the year from which the commission wants to link the age to life expectancy; no law exists on that.
Where the 1960 cohort stands in autumn 2026
Three of the four dates have already arrived for this cohort. The ages come from the transition tables of the German pension code (section 235, section 236, section 236a, section 236b), each raised by 4 months for 1960. With a birthday on 20 September 1960:
| Pension type | Age | First month | Status October 2026 |
|---|---|---|---|
| Severe disability, earliest | 61 years 4 months | 1 February 2022 | reached; 10.8 % off at that point |
| 35 years, earliest | 63 years | 1 October 2023 | reached; reduction shrinking since |
| 45 years / disability unreduced | 64 years 4 months | 1 February 2025 | reached, no reduction |
| Standard pension | 66 years 4 months | 1 February 2027 | not yet reached |
Note the age column: with a recognised severe disability you reach the unreduced limit in the same month as someone with 45 years. If you are still employed at the end of October 2026, you either have fewer than 35 years, are deliberately waiting for the standard date, or simply have not chosen yet.
What each month before the standard start still costs
The reduction follows section 77 SGB VI: 0.3 % for every month between your start and the standard age, so it shrinks as the date approaches. For a pension of €1,500 at the standard age:
| Start | Months early | Reduction | Monthly pension |
|---|---|---|---|
| 1 November 2026 | 3 | 0.9 % | €1,486.50 |
| 1 December 2026 | 2 | 0.6 % | €1,491.00 |
| 1 January 2027 | 1 | 0.3 % | €1,495.50 |
| 1 February 2027 | 0 | 0.0 % | €1,500.00 |
The cut is permanent and remains after you pass the standard age. The reduction calculator repeats this with the figure from your annual statement; the calculator above compares every pension type.
The other direction: working past February 2027
If you keep working after the standard age and do not draw the pension yet, it grows by 0.5 % per month. 6 months of deferral lift €1,500 to about €1,545. There is also the Aktivrente: wages from employment after the standard age stay tax-free up to €24,000 a year (section 3 Income Tax Act), from the following month and for employees only. See retiring later and earning alongside a pension.
Tax: 2026 or 2027 as the start year
Under section 22 Income Tax Act the taxable share depends on the year the pension begins. For people born in 1960 every possible start falls between 2022 and 2027. Those who began in 2025 after 45 years are taxed on 83.5 %; a 2026 start means 84.0 %, the standard start in 2027 84.5 %. If you plan to retire to another country, which state may tax the pension is a separate question this calculator does not answer; see pension taxation.
One cohort later: 1961
People born in 1961 reach every limit two months later: the standard pension at 66 years 6 months, the 45-year pension at 64 years 6 months. The maximum reduction at 63 therefore rises from 40 to 42 months, from 12.0 % to 12.6 % (born in 1961).
And the reform proposal?
On 23 June 2026 the pension commission recommended abolishing the 45-year pension, raising the earliest start after 35 years to 64 and linking the standard age to life expectancy from 2031. It is a proposal, not law. For the 1960 cohort the 64th birthday and the start of the 45-year pension are already in the past, and the standard start in 2027 comes before 2031. The scenario in the calculator above therefore shows mostly dates that have passed. Further developments are tracked under pension reform.