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More money for pensioners from July: But what remains of the pension increase at the end?

2022-07-02T15:22:38.426Z

More money for pensioners from July: But what remains of the pension increase at the end? Created: 07/02/2022, 17:10 Around 21 million pensioners in Germany will receive their pension adjustment notification in the coming days. It read: The pension increases. © Felix Kästle/dpa/dpa-tmn This year there will be a significant increase in pensions for more than 21 million retirees from July. But ho



More money for pensioners from July: But what remains of the pension increase at the end?

Created: 07/02/2022, 17:10

Around 21 million pensioners in Germany will receive their pension adjustment notification in the coming days.

It read: The pension increases.

© Felix Kästle/dpa/dpa-tmn

This year there will be a significant increase in pensions for more than 21 million retirees from July.

But how much of the pension increase really remains?

An overview.

Munich – From July there will be a whopping plus for more than 21 million pensioners.

Contrary to what is often feared, the tax office will not collect any of this.

On the contrary: the tax burden on pensioners is falling.

The higher pension usually ends up in the account at the end of July.

Without request.

This applies to all statutory pensions, including survivor's and disability pensions.

Notification of the new pension amount will be sent to all pensioners by the end of July at the latest.

Will the retirement age be raised to 70 anytime soon?

That's what the Minister of Labor says.

pension increase

West pensions will increase by 5.35 percent.

One pension point (earnings point) will be worth 36.02 euros instead of the previous 34.19 euros.

In the new federal states, pensions are increasing even more.

The current pension value East grows by 6.12 percent from 33.47 euros to 35.52 euros.

Example: West pensioners who have received a gross pension of EUR 1,500 can expect a good EUR 80 more (EUR 1,580.25) from July of this year.

An East pension even increases by almost 92 euros (1591.80 euros).

If you want to retire before the standard retirement age, you often have to expect deductions.

insurance premiums

Contributions for health and long-term care insurance are deducted from the gross pension – i.e. also from the increase amount.

That's about 11 percent on average.

A change of health insurance can bring significant savings here.

All retirees who have been a member of their fund for at least twelve months can switch to another – possibly cheaper – fund in a completely unbureaucratic manner and without a health check.

Example: A pensioner in North Rhine-Westphalia with a gross pension of 1,500 euros saves 8.62 euros per month when switching from the DAK to the BKK Euregio.

Simply select a new cash register - this then takes care of the change modalities.

A comparison can be found, for example, at www.krankenkassen.de.

housing benefit and basic security

Pensioners who have previously received housing benefit will receive the same benefit until the end of the approval period.

A recalculation only takes place if the income increases by at least 15 percent.

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It is different with basic security in old age.

The rule here is: left pocket in, right pocket out.

50 euros more pension - that usually means: 50 euros less basic security.

energy cost subsidy

Retirees usually get nothing from the recently agreed energy cost allowance of 300 euros.

Unless they receive – this is the first exception – housing benefit.

Then they receive at least 270 euros for heating costs (for two people: 350 euros).

For this reason, too, an application for housing benefit is currently more worthwhile than ever, even if the result is only a few euros.

For owners, the benefit is called the load allowance.

The Biallo housing benefit calculator shows whether there is a claim.

Pensioners who are (part-time) employed in September 2022 are also entitled to the flat-rate energy cost allowance.

Taking on a mini-job is enough for this.

Important: Arrange an employment contract and have your wages transferred to your checking account.

Tax 2022

The tax office is not accessing the pension plus this year either.

This is ensured by the basic tax allowance, which was recently increased to 10,347 euros.

In 2021 this was still 9744 euros.

Around every fourth pensioner has had to pay taxes so far - mostly because of other taxable income in addition to the pension.

For 2022, the tax burden will decrease slightly for almost all of them.

80,000 pensioners who previously had to pay taxes are even exempt from tax liability due to the higher basic allowance.

The Federal Ministry of Finance calculated this for the portal meine-pension.de.

This affects pensioners who only had to pay a small amount of tax for 2021.

You have to submit a tax return for 2022, but the tax assessment will then contain a “zero”.

tax declaration

According to the fourth Corona Tax Assistance Act, the submission deadline of October 31, 2022 also applies to pensioners.

The following generally applies: With the Retirement Income Act, the taxation of pension income was newly regulated from 2005.

Anyone who was already retired in 2005 or drawing a statutory pension for the first time must pay tax on 50 percent of their retirement income.

Since pensioners can also use high tax allowances, there is no tax burden for many.

However, that can change very quickly if the person concerned earns a second pension or other additional income - for example from capital investments or rentals.

For each additional pension year since 2006, the taxable portion increases continuously until all payments are taxed in 2040.

This means that the coming retirees will be asked to pay more and more.

Those who retire in 2022 will already have to pay tax on 82 percent of their pension, and 18 percent will remain tax-free.

The tax-free portion of the pension (pension allowance) is converted into a fixed euro amount in the tax assessment for the second pension year and is fixed until the end of life.

(

Rolf Winkel

)

Source: merkur

All life articles on 2022-07-02

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