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Higher pensions: There will be so much money from summer 2020 - when the increased pension will be paid

2020-06-03T11:31:15.351Z


The Federal Cabinet has decided to raise the pension sharply on July 1. What you should know


The Federal Cabinet has decided to raise the pension sharply on July 1. What you should know

  • Pensions will be increased in summer 2020 . The cabinet decided on July 1st  .
  • There is noticeably more money for pensioners .
  • When the increased pension is paid depends on when the pension begins.

Update from 02.06.2020: pension increase - when the increased pension is paid

Pensioners in Germany will get more money as of July 1st . The annual pension adjustment is responsible for this. However, according to a report by T-Online, the Deutsche Rentenversicherung Bund in Berlin points out that the adjustment does not reach the account of all seniors at the same time . When the increased pension is paid depends on when you start to retire : If you were retired before or in March 2004, you will receive the adjusted pension at the end of June, according to the portal. If the pension started in April 2004 or later, the plus would not be in the account until the end of July. The payment is done automatically.

Article from March 24th, 2020: Cabinet decides higher pensions on July 1st

The approximately 21 million pensioners in Germany are to receive noticeably more money  again in the summer : on April 22, the Federal Cabinet decided to increase the pension considerably on July 1. According to a decree by the Minister of Social Affairs Hubertus Heil (SPD), the pension increases by 3.45 percent in western Germany and by 4.2 percent in the new federal states. The Eastern pensions are thus moving closer to the Western payments.

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Pension increase in summer 2020 - so much money is added

A monthly pension of 1,000 euros , which is based only on contributions from the west , should therefore increase by 34.50 euros , an equal pension with contributions from the east by 42.00 euros . The consequences of the corona crisis for the economy have not yet been taken into account. This therefore has no effect on the upcoming pension increase. The Federal Council has yet to approve the increase. The increase * on July 1 had already been announced at the end of March - now Heil is implementing this. The basis for the pension adjustment is the wage development in the past year. The development of premiums and the ratio of contributors and pensioners also play a role.

Pensions had also increased in previous years. Most recently, payments in 2019 rose by 3.18 percent in western Germany and 3.91 percent in the east. In 2018 it was 3.22 percent (west) and 3.37 percent (east).

Read also : That's why there is a new net amount on your 2020 pay slip.

Pensions in the east continue to converge with those in the west

The current pension value in the east now rises to 97.2 percent of the value west. By 2024, it should gradually reach 100 percent based on a 2017 law. The pension value specifies in euros how much a earnings point in pension insurance is worth. A salary point - calculated according to a complicated formula - is decisive for the amount of the pension.

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There are more and more pensioners for fewer and fewer contributors

However, the pension faces problems because fewer and fewer contributors come to more and more pensioners. When today's baby boomers in their mid-fifties to mid-sixties retire, there are huge gaps in the cash register.

Read here : Woman (60) is completely shocked - when she learns how much pension she will get later

Bundestag has decided pension package until 2025

The Bundestag has decided on a pension package for the period up to 2025 . It fixes the level of pensions - i.e. the ratio of a standard pension after 45 years of contributions to wages - at at least 48 percent. Until then, the contribution rate should not exceed the 20 percent mark. It is now 18.6 percent.

A commission has just submitted proposals to the Federal Government for the period after 2025. She recommends a reform package, but not a fundamental change, for example with a higher retirement age. Heil then announced its own proposals by autumn.

Also interesting : woman (60) is completely shocked - when she learns how much pension she will get later.

ah / soa / dpa / T-Online.de

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* merkur.de is part of the nationwide central Ippen editorial network.

Source: merkur

All life articles on 2020-06-03

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