The pension increase in summer 2024 exceeds forecasts. But there is also a lot of criticism of the planned pension plus.
Berlin – The summer pension increase in 2024 is imminent and it will be larger than originally expected. Before the official announcement, the traffic light coalition had forecast a pension increase of 3.5 percent, but this is significantly higher, as was announced at the end of March. From July 1, 2024, pensioners will receive 4.57 percent more pension. According to the Ministry of Labor and Social Affairs, the pension adjustment is “above four percent for the third year in a row”. In addition, the pension increase in summer 2024 will be above inflation for the first time in two years.
For the first time, the pension adjustment will be carried out uniformly across the country, after the pension value in the East had already reached the West value last year.
Pension increase 2024: Table shows how much more money pensioners will receive from July 1st
pension |
Possible pension from July 2024 |
Pension increase from summer 2024 at 4.57 percent |
|---|---|---|
700 euro |
731.99 euros |
+ 31.99 euros |
800 euros |
836.56 euros |
+ 36.56 euros |
900 euros |
941.13 euros |
+ 41.13 euros |
1000 Euro |
1045.70 euros |
+ 45.70 euros |
1100 euros |
1150.27 euros |
+ 50.27 euros |
1200 euros |
1254.84 euros |
+ 54.84 euros |
1300 euros |
1359.41 euros |
+ 59.41 euros |
1400 euros |
1463.98 euros |
+ 63.98 euros |
1500 Euro |
1568.55 euros |
+ 68.55 euros |
1600 euros |
1673.12 euros |
+ 73.12 euros |
1700 euros |
1777.69 euros |
+ 77.69 euros |
1800 euros |
1882.26 euros |
+ 82.26 euros |
1900 euros |
1986.83 euros |
+ 86.83 euros |
2000 Euro |
2091.40 euros |
+ 91.40 euros |
2100 euros |
2195.97 euros |
+ 95.97 euros |
2200 euros |
2300.54 euros |
+ 100.54 euros |
2300 euros |
2405.11 euros |
+ 105.11 euros |
2400 euros |
2509.68 euros |
+ 109.68 euros |
Federal Labor and Social Affairs Minister Hubertus Heil (SPD) described the pension increase in July 2024 as “good news for pensioners”. This is possible thanks to a robust labor market and positive wage agreements, which are taken into account in the decision to adjust pensions.
Ampel wants to stabilize pensions with pension package II
Heil spoke of the first nationwide increase as a “milestone” 34 years after German unification. “Work is worth the same in East and West when it comes to pensions,” the minister emphasized.
In order to ensure that retirement benefits remain reliable for everyone in the future, they will be stabilized through the reform via Pension Package II, said the minister. This will make the statutory pension “permanent and at the same time relieve the burden on future contributors along with the generational capital”. The minister emphasized that this would ensure “that the young generation will also benefit from growth in the future”. Because stable pensions are “not a luxury, but have been the basis of our social market economy for decades and a guarantee of stability and social peace”.
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Criticism of the pension increase in 2024: “Inadequate”
Nevertheless, the pension increase in summer 2024 was not spared from criticism. Bundestag member Sahra Wagenknecht was particularly critical and described this year's increase as "insufficient" and referred to the significant loss of purchasing power in recent years. “It is a little more than the current inflation, but it is still a disappointment for the 21 million pensioners, because food and energy have become extremely expensive in recent years,” said Wagenknecht to the German Press Agency (dpa). Berlin.
Wagenknecht also described how the pension increase came about as “hardly understandable”. It still lags behind wage developments, even though the purchasing power of wages has been falling for years. This would mean that German pensions would remain well below the European average level. “And more and more old people have to radically limit themselves or work at food banks,” said Wagenknecht. “Debates about pensions supposedly rising too sharply (...) are completely out of place in this situation.”
Weapons or pensions: Scholz rejects cuts in pensions
In fact, there has been increasing criticism of the high social spending in recent weeks. FDP leader and Finance Minister Christian Lindner called for social spending to be frozen in the next few years in order not to put any further strain on the state budget. In addition, a debate has arisen about the high defense spending in the coming years: from 2028, the federal government will have to finance the defense budget entirely from the regular budget again. In order to meet NATO's two percent target, some politicians are calling for a cut in the social budget to finance the Bundeswehr.
However, Chancellor Olaf Scholz (SPD) strictly rejects this proposal. “I can allay your fear that the Chancellor has such plans,” said the SPD politician in response to a question. It would be a “powerful effort” to achieve the two percent, said Scholz, alluding to the financing problems after the special fund expired. “But in my view it would be wrong to finance this through cuts, for example in pensions or elsewhere. I would be against it.”
Regarding criticism from business associations and the opposition about the planned minimum pension level of 48 percent of average income, Scholz said that some people currently want to cut pensions again. “The Chancellor is against this. And if he is insulted for it - gladly.”
With material from dpa and Reuters