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Pension increase will be canceled for millions of retirees in 2021 - but will pensions rise?

2021-06-10T22:20:40.318Z

For millions of pensioners in Germany there will not be the usual pension increase this July. The situation for pensions will be different in 2021.



For millions of pensioners in Germany there will not be the usual pension increase this July.

The situation for pensions will be different in 2021.

Many pensioners are now financially feeling the consequences of the corona crisis.

For the first time in years

,

many of them will

not see a pension increase

this July

.

Because after years of pension

increases, the increase in old-age

pensions 

that is otherwise customary in summer in 2021 will be canceled because of the Corona crisis in western Germany

 And in the 

new federal states there

 will only be a mini

increase of 0.72 percent

this year

 .

A total of 21 million people in Germany receive a pension.

Corona zero round: No pension increase in July 2021 for millions of pensioners in Germany

How exactly does the development as a result of the Corona crisis come about?

"The pensions will rise this year in the new federal states by 0.72 percent, in the west there will be no increase", the German pension insurance described in a message - and explained the background: The plus in the pension is above all oriented in the 

development of wages

 for employees over the past year.

"Because it is here because of the 

corona pandemic

 If there was no increase in 2020, pensions in the West cannot be increased this year.

The pension guarantee protects retirees from a reduction in pensions. ”The pension increase in the new federal states results from the so-called adjustment staircase as part of the east-west adjustment of pensions. 

Also read

:

Do you

only retire at 68?

Representative survey comes to a clear result

Pensions 2021

Meanwhile,

1.34 million retirees in Germany should be

happy.

For example, the salaries of ex-federal civil servants rose by 1.2 percent as of April 1, 2021, as reported by the

tz (June 5th / 6th edition)

;

The increase for former state and municipal civil servants is similarly high.

The reason is: The amount of their retirement pensions is based on the pay of active civil servants - if this increase, the pension also increases.

Former civil servants would have to pay full tax on their pensions.

Also read:

Tax return 2020 not yet completed?

You should remember this deadline

Groundbreaking BGH rulings - Federal Ministry of Finance wants to change pension taxation

For years there has been a dispute about the

possible double taxation of pensions

.

At the end of May, the Federal Fiscal Court announced groundbreaking decisions on two cases.

You can read more about this and the political consequences in terms of pension taxation here.

(ahu) * Merkur.de and tz.de are offers from IPPEN.MEDIA.

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Source: merkur

All life articles on 2021-06-10

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