The Limited Times

Now you can see non-English news...

Higher pensions have been decided: there will be so much money from summer 2020

2020-04-30T14:53:54.028Z


The Federal Cabinet decided on a strong pension increase on July 1. What you should know


The Federal Cabinet decided on a strong pension increase 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 .
  • The increase is different in the east and west of the country.

Cabinet decides higher pensions on July 1

The approximately 21 million retirees in Germany should receive noticeably more money again in the summer : on April 22, the Federal Cabinet decided to increase the pension significantly  on July 1. According to a decree by Social Minister 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.

Find out here : Stiftung Warentest: These are the twelve most common mistakes in life and pension insurance

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 still has to approve the increase. The increase * for 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 risen 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).

Also read : This is 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.

There are more and more pensioners for less and less contributors

However, the pension faces problems because fewer and fewer contributors come to more and more pensioners. When today's "baby boomer" age groups 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 - the ratio of a standard pension after 45 years of contributions to wages - 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. It 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

Reveal millionaires: these five tips will make you rich

To the photo gallery

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

List of rubric lists: © picture alliance / Patrick Seeger / dpa

Source: merkur

All life articles on 2020-04-30

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.