German pension for people born in 1966
If you were born in 1966 you turn 60 in 2026 and still have three years until retiring at 63, more lead time than any other cohort covered here.
Worked through by Radif Partners · Editorial policy · How we calculate
Earliest pension start
1 July 2029
at 63 years, reduction 14.4 %
| Standard pension | 1 July 2033 |
|---|---|
| Long-term insured (35 yrs) | 1 July 2029 · −14.4 % |
| No reduction from | 1 July 2033 |
| Pension at earliest start | €1,370 |
If the commission proposal became law
Earliest 1 July 2030 (12 months later), reduction 10.8 %; no reduction from 1 July 2033.
Scenario without transitional rules. No draft bill published; current law applies.
Step-by-step calculation
- Standard retirement age for people born in 1966: 67 years (section 35 SGB VI). Start on 1 July 2033, 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 2030 with a 10.8 % 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
The 1966 cohort has the same age limits as everyone born since 1964: standard pension at 67 years (section 35 SGB VI), unreduced after 45 years at 65 (section 38), and from 63 after 35 years with a 14.4 % reduction (Abschlag, section 36). With a birthday on 3 October 1966 that means: earliest on 1 November 2029, unreduced after 45 years on 1 November 2031, standard on 1 November 2033. The taxable share rises from 85.5 % to 87.5 % across these dates. Because the first possible start is not until 2029, the commission proposal of 23 June 2026 would hit this cohort harder than older ones: with no transition the earliest start would be 1 November 2030 with 10.8 % off, and without the 45-year pension starting at 65 would cost 7.2 %. That is not law. You can offset the reduction with extra payments (Ausgleichszahlung) up to the standard age; with 40 pension points, fully offsetting a start at 63 costs €65,013 at 2026 values.
The cohort with the longest lead time
People born in 1966 turn 60 in 2026. That leaves three years until the 35-year pension (section 36 SGB VI), five until the 45-year pension (section 38) and seven until the standard age (section 35). The limits are the same as for 1964 and 1965; what is new is that every date falls after 2028. With a birthday on 3 October:
- 1 November 2028: earliest start with a severe disability, 10.8 % off;
- 1 November 2029: earliest start after 35 years, 14.4 % off;
- 1 November 2031: no reduction after 45 years or with a severe disability;
- 1 November 2033: standard pension.
What offsetting the reduction costs
If you want to leave early, you can offset the reduction in advance with contributions (section 187a SGB VI). In 2026 one pension point (Entgeltpunkt) costs €9,661.58, divided by the access factor. Assuming 40 points by the standard age, a pension of €1,701 at the current pension value, a full offset would cost at 2026 values:
| Case | Reduction | Monthly loss | Full offset |
|---|---|---|---|
| Start at 63, current law | 14.4 % | €244.92 | €65,013 |
| Start at 64, proposal without transition | 10.8 % | €183.69 | €46,792 |
| Start at 65 without 45-year pension, proposal | 7.2 % | €122.46 | €29,984 |
Part payments are possible, and there is no refund, even if you end up retiring later. The price follows the figures of the year you pay, so it will change before 2029. The offset payment calculator works with the points on your annual pension statement.
Tax: one point more than 1964
The taxable share rises by half a point with each start year (section 22 Income Tax Act). For people born in 1966 every start comes two years after the matching date for 1964: 85.5 % instead of 84.5 % at 63, 86.5 % instead of 85.5 % after 45 years, 87.5 % instead of 86.5 % at the standard age. If you plan to spend retirement in another country, which state taxes the pension is a separate question this calculator does not cover; see pension abroad.
The reform proposal hits this cohort fully
The pension commission recommends abolishing the 45-year pension, raising the earliest start after 35 years to 64 and linking the standard age to life expectancy from 2031, reaching about 67.5 by 2041. For people born in 1966 every start lies after the end of 2026, the target date for a law. With no transition: earliest start on 1 November 2030 instead of 1 November 2029, and starting on 1 November 2031 would cost 7.2 % instead of nothing. The proposal does not set the standard age that the link would produce for this cohort; the calculator above still uses 67 years. The German Pension Insurance stresses that only current law counts until a law is passed. Status: pension reform.
Compared with 1965
The 1965 cohort reaches each limit one calendar year earlier and is taxed on half a percentage point less. Under current law the age limits themselves are identical for both. Leaving Germany early? The refund rules apply only if the five-year qualifying period is not met.