The thought of retirement causes many Germans, especially in expensive cities like Munich, significant anxiety. Young people recognize the necessity of private provision, while older generations worry about the adequacy of state pensions and their limited time to save more. This pervasive concern has brought pension issues to the forefront of daily news and political discourse. Our editorial team consulted an expert to understand the true gravity of the situation and explore potential solutions.
‘A Drop in the Ocean’: Pension Consultant’s Stark Assessment of Pension Increase
On July 1, 2026, pensions are set to increase by 4.24%. Good news for all retirees? Not really, according to pension consultant Claudia Mößner. She explains that when inflation and declining purchasing power are factored in, the increase is largely negated. Her sobering conclusion: “Effectively, less money will be left after the pension increase, and it is, I would say, a drop in the ocean.”
Claudia Mößner, who has run an independent pension consulting firm in Munich for 25 years, focuses on optimizing pensions, advising on the transition to retirement, and assisting with pension applications. In an interview in mid-April, she shed light on the challenges facing Munich’s retirees.
The new ‘Aktivrente’ (active pension) is often presented as a solution for those with insufficient pensions, allowing retirees to earn up to 2,000 euros per month tax-free while continuing to work. This appears to be a win-win: more workers, more money for retirees. Mößner acknowledges the potential benefits of the Aktivrente and advises continued contributions to pension insurance during this period, foregoing the usual exemption from insurance. However, Mößner believes the Aktivrente “misses the mark a bit.” She argues it should apply to retirees before the standard retirement age of 67, ideally from age 64. “I would have liked an extension there. We, as the Federal Association of Pension Consultants, also advocated for this, but unfortunately, the regulation remained at the standard retirement age.”
Global Crises, Economic Uncertainty, and Costly Munich: Widespread Insecurity
Many Germans have invested parts of their retirement savings in stock market-linked plans, often ETFs, hoping to build financial security over the years. However, frequent global crises regularly shake the markets, leading to significant fluctuations and predictions of crashes. Mößner notes that “clients are uncertain,” fearing that their pensions will be cut in future reforms and that their standard of living will decline. This is particularly true for those retiring within the next five years, who viewed the German pension insurance as comprehensive coverage and have no other investments.
In Munich, the high cost of living exacerbates these concerns. Rents are exorbitant, especially for retirees who do not own property. Many of Mößner’s clients feel compelled to move out of the city, to more economically weaker regions. However, this often brings new challenges, such as long commutes and limited access to medical care.
‘Facing Reality’: The Pension Consultant’s Tips for Munich Residents
Given the anxieties and uncertainties surrounding pensions, how should people in Bavaria, and specifically Munich, react? What steps should they take? Our editorial team asked Mößner for her expert advice:
- Create Transparency: “Always check your pension situation, face reality. Deal with net amounts, identify the pension gap, and see if you can contribute privately or through company schemes, or even on the capital market.”
- Get Informed: “I recommend independent pension consulting not just because I am a pension consultant – of course also – but because the state side is just one side. There is much more to consider.”
- Flexibility in Transition: “Don’t say: ‘It’s all or nothing, I either continue working or I retire,’ but rather broaden your horizon a bit and say: ‘Now, I think, we have to consider part-time models and the FlexiRente.’ Then also probably consider the Aktivrente.”
Mößner repeatedly emphasizes the FlexiRente, which she strongly recommends. This allows for partial pension payments. “So I go into old-age retirement, but continue to work and receive the pension at 10 or 50 percent – up to 99.99 percent of partial pension payments are possible while continuing to work,” Mößner explains. “And with that, I can also build up capital, utilize tax advantages, or build reserves for when I actually retire.” This can also alleviate some fear, as it allows for a gradual transition.
The current pension landscape in Munich is complex, marked by global economic shifts and local housing pressures. Mößner’s insights underscore the urgent need for individuals to proactively engage with their retirement planning, seeking independent advice and exploring flexible options to secure their financial future.
Source: https://www.merkur.de/bayern/bleibt-effektiv-weniger-geld-uebrig-renten-expertin-spricht-klartext-was-muenchner-jetzt-tun-sollten-94279606.html
