German 10-year average pension discount rate (HGB), 5 years
German 10-year average pension discount rate (HGB), 5 years stood at 1.75% in Sep 2026, according to Deutsche Bundesbank. It is one of the indicators in the Interest rates (monthly) table (Value · Monthly), with a complete series running from Jan 2015 to Sep 2026. The complete series with an interactive chart, free to download.
This indicator in the Interest rates (monthly) table
| Indicator | 09-2026 | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 10-year average | |||||||||||
| Residual maturity of 5.0 year | 1.75 | 1.72 | 1.69 | 1.66 | 1.63 | 1.61 | 1.59 | 1.56 | 1.54 | 1.53 | |
| Residual maturity of 6.0 year | 1.81 | 1.77 | 1.74 | 1.72 | 1.69 | 1.67 | 1.65 | 1.62 | 1.6 | 1.59 |
Understanding german 10-year average pension discount rate (HGB), 5 years
Mid-range corporate planning cycles intersect with strict accounting regulations through this metric, which determines the official discount factor for obligations maturing in exactly 5 years. Calculated according to the HGB, it derives a 10-year historical average of market rates corresponding to this medium-term horizon. Companies utilize this specific figure to determine the present value of provisions, such as mid-term pension liabilities or deferred compensation, ensuring that their financial statements remain insulated from the daily erratic swings of the bond market. It differs from shorter maturity metrics by capturing the slightly higher term premium typically associated with a 5-year lockup period while still applying the same heavy decade-long smoothing effect.
Interpreting this accounting rate involves understanding the immense inertia built into its methodology. Month-on-month comparisons will invariably show only microscopic shifts, making long-term trend analysis the only viable way to read the data. A common analytical mistake is comparing this 10-year average against a standard spot yield, as the two serve entirely different purposes; the spot yield reflects borrowing costs at a specific moment, whereas this rate dictates regulatory valuation. Revisions do not occur due to the rigid mathematical formula used to compile the historical data. The lack of seasonal adjustment is deliberate, as the lengthy averaging period completely neutralizes short-term seasonal market distortions.
Frequently asked questions
- Does this metric reflect the current market cost of borrowing?
- It is a smoothed historical average used strictly for corporate accounting valuations, not a measure of current market borrowing costs.
- What type of corporate obligations are discounted using this specific maturity?
- It is applied to balance sheet provisions, such as pension commitments or legal reserves, that are expected to be settled in exactly 5 years.
- How quickly will a massive spike in market interest rates alter this figure?
- Because it averages historical data over a 10-year period, even a severe contemporary spike will only alter the output very gradually over many subsequent periods.