The anticipated pension increase in Germany mid-year 2025 is expected to push over 70,000 retirees into taxable income, leading to a total tax burden increase of more than 4 billion euros. The Federal Ministry of Finance issued a report indicating that the total tax liability will rise from 58.6 billion to 62.7 billion euros. The proposed pension increase of 3.5% is considered a political issue, as tax rates outpace pension growth, prompting criticism from politicians like Sahra Wagenknecht.