Spending related to old age and illness accounted for around 70% of Germany’s total social spending last year, pushing the country’s social budget to a record high, an analysis by the Ifo institute found. More than 80% of the real increase in spending since 1992 came from these areas. Social spending rose 11.5%, or €104 billion ($121.33 billion), between 2019 and 2025 after adjusting for price effects, while its share of the economy increased from 29.6% to 32%. The main cost drivers were additional spending for the insured elderly population on illness and care, as well as higher federal pension payments. Ifo researcher Emilie Hoeslinger said demographic change was intensifying the shift in the welfare state burden between generations, while weak economic growth was also lifting the social budget’s share because it was growing faster than GDP.