Good news: Pensioners will receive significantly more money in 2022 than planned
Created: 03/23/2022, 11:53 am
By: Janine Napirca
Federal Minister of Labor and Social Affairs Hubertus Heil originally spoke of a pension increase of 4.4 percent.
© Martin Wagner/Imago
Pensioners in Germany can look forward to more pensions on July 1st.
As of July 1, pensions in Germany will be increased significantly
, as the editorial network Germany (RND) reports.
According to the report, pensioners should receive more than 5 percent in the west and even more than 6 percent in the east in the future.
You can find out here how the 2022 pension increase came about and what it means for you.
This is how high the pension increase will be on July 1, 2022
Around 21 million pensioners can look forward to an increase of more than 5 percent as a result of the pension increase on July 1, 2022.
To be precise, there is
5.35 percent more money
.
In the
east
, the pension increase is even
6.12 percent
, according to the report.
You can also find out whether it is worth paying into the statutory pension insurance system voluntarily.
I am pleased that we can announce a significant pension adjustment.
That's good news for the people who've kept the store running for years.
Hubertus Heil, Federal Minister of Labor and Social Affairs
The Federal Minister of Labor and Social Affairs, Hubertus Heil, also emphasized that the development of pensions should not be decoupled from the development of wages.
Why is this July 1, 2022 pension increase so surprising?
Initially, a lower pension increase was expected, since according to the report, the Federal Minister of Labor and Social Affairs Hubertus Heil
had spoken of a pension increase of 4.4 percent at the end of November
.
According to RND, the President of the German Pension Insurance Association, Gundula Roßbach, spoke of
"one of the highest pension adjustments in Germany since the introduction of the pension insurance"
.
Especially in view of the current challenges - be it rising prices or the international crisis - it is important to see that our pension system is working.
Hubertus Heil, Federal Minister of Labor and Social Affairs
With this pension increase, the current price increase for pensioners should be mitigated at the same time.
Why is the pension increase higher in the East than in the West?
According to the report, this has
to do with the equalization of
pensions between East and West .
Read here about the tax advantages of pension funds.
What is meant by pension guarantee and catch-up factor?
And how does that affect the pension increase?
annuity guarantee
Since the pension increase is always based on the wage development of the previous year, there was a freeze on pensions in 2021.
Because the corona pandemic had led to an economic slump in 2020.
In purely arithmetical terms, according to the report, even a pension cut would have been due.
However, the pension guarantee has prevented exactly that.
catch-up factor
In 2021, the economy started to pick up again, so that a significant pension increase is due in 2022.
Due to the pension guarantee last year, which had prevented a pension cut, the pension increase should actually be dampened due to the catch-up factor.
According to the report, the FDP had insisted on the reintroduction of the catch-up factor in the coalition negotiations.
The Federal Ministry of Labor and Social Affairs announced a corresponding draft law, in which improvements in the disability pension would be taken into account in addition to the catch-up factor.
The left warns that the planned pension increase in 2022 will not be enough
The pension increase is good news for pensioners.
Nevertheless, the problem of high prices remains.
Therefore, this pension increase is just a compensation for inflation.
If things go badly and the traffic lights don't counteract the energy and food prices, this pension increase can even mean a de facto minus round in the end.
Our demand remains: The level of pensions must rise again to 53 percent, which ensures a standard of living – especially in view of the price explosions.
Dietmar Bartsch, Co-Chairman of the Left Group in the German Bundestag
In view of the rising prices, such as
heating costs, fuel or food,
the party Die Linke suspects that the planned pension increase will not be enough.
Read here whether you are entitled to a basic pension.
(jn)
