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Pension shock for millions of Germans: pension increase fails in the west - only mini-increase in the east

2021-03-18T14:13:46.031Z

It had been suggested - now it is certain: Pensioners in western Germany will not receive a pension increase this summer for the first time in years.



It had been suggested - now it is certain: Pensioners in western Germany will not receive a pension increase this summer for the first time in years.

Update from March 18, 2021:

After years of pension increases, the usual increase in old-age pensions this year will not be available due to the corona crisis in western Germany.

In the east there will only be a mini increase of 0.72 percent.

The Federal Social Minister Hubertus Heil (SPD) announced a report by the German Press Agency (dpa) on Thursday.

With a time lag, the crisis is now also affecting pension adjustments, said the SPD politician.

Last year there was initially another strong increase of 4.2 percent in the east and 3.45 percent in the west.

The fact that pensions in the east are rising slightly, unlike in the west, despite the crisis, is due to the so-called adjustment staircase, as dpa also writes: By 2024, the pension value in the east will gradually be adjusted to that in the west until it is the same.

Article dated November 5, 2020:

According to a report,

pensioners in West Germany will

have to be prepared

for a

zero round

in

2021

because of the

corona crisis *

.

In the east, on the other hand, pensions are expected to rise by 0.72 percent.

According to a report by the news portal "ThePioneer", this emerges from the draft of the 2020 pension insurance report, as reported by the German Press Agency (dpa) on Wednesday (November 4, 2020).

You can also read:

Pension: This is how much money is left for Germany's pensioners on average

These are the forecasts for pensions in West and East Germany

The Chairman of the Federal Pension Insurance Board, Alexander Gunkel, announced in June that pensions in the West are unlikely to rise.

Due to the legal east-west alignment, there will be an increase of at least 0.7 percent in the east, writes dpa.

According to the pension insurance, the June information was based on the annual summer estimate of the figures, and the information from the pension insurance report was based on the autumn estimate.

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You shouldn't fall for that

According to the aforementioned report, the government expects a

decline in gross wages and salaries, which are relevant for pension insurance, by 1.0 percent in the current year

, dpa also writes.

For the next few years, however, considerable increases in retirement benefits are expected

.

“By 2034, pensions will increase by a total of around 32.2 percent.

That corresponds to an average rate of increase of 2.3 percent per year, "it says according to" ThePioneer "in the document.

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This article contains affiliate links.

Source: merkur

All life articles on 2021-03-18

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