There is not much good news at the moment. Millions of pensioners can be happy. This summer, their earnings are going a little better than predicted.
Berlin (dpa) - The approximately 21 million pensioners can look forward to noticeable pension increases in summer. In West Germany the pension increases by 3.45 percent, in the new federal states by 4.20 percent. The Federal Ministry of Social Affairs announced on Friday in Berlin.
As a result, pensions will grow somewhat faster on July 1st than initially predicted.
A monthly pension of EUR 1,000, which is based only on contributions from the West, increases by EUR 34.50, an equivalent pension with contributions from the East by EUR 42.00.
The pensions in eastern Germany are moving closer to the western salaries. The current pension value in the east increases to 97.2 percent of the pension value west. By 2024, it should gradually climb to 100 percent based on a 2017 law.
The pension value specifies in euros how much a earnings point in pension insurance is worth; a earnings point - calculated using a complicated formula - is decisive for the amount of the pension.
The pension level is 48.21 percent - it shows how high the level of protection of the pension is compared to wages.
The basis for the pension adjustment is the wage development in the past year. The wage increase relevant for pension adjustment is 3.28 percent in the old countries and 3.83 percent in the new countries. The development of premiums and the ratio of contributors and pensioners also play a role.
The effects of the Corona crisis on the economy have not yet been taken into account in the stipulations. It therefore has no effect on the summer pension increase.
The amount of the pension adjustment is determined by the social department in a regulation. The Federal Council must agree.
Pensions have also increased in recent years. In 2019, payments in western Germany increased by 3.18 percent, in the east by 3.91 percent. In 2018 it was 3.22 percent (west) and 3.37 percent (east).
Federal Social Minister Hubertus Heil (SPD) emphasized: "Even in uncertain times, pension insurance stands for reliability." The current pension adjustment ensures that pensioners participate in wage developments and thus ensures higher pensions. Pension Insurance President Gundula Roßbach said: "It's really good news in these difficult times." Pension insurance could thus send a positive signal in the current economic situation.
With the retirement of the high-birth age groups, fewer contributors will come to more pensioners in the next few years. The 18.6 percent contribution rate is expected to remain stable through 2024, according to the latest pension insurance report. According to the law, it should not exceed 20 percent by 2025. Then it should rise.
The summer pension increase should bring the state additional income tax in the hundreds of millions. Due to an initially lower forecasted increase, the Federal Ministry of Finance had already assumed 420 million euros. In 2019 it was 390 million euros, in the previous years 350 and 220 million.
According to a "Spiegel" report, the government's pension commission wants to recommend a security level between 44 and 49 percent. There was no consensus on a concrete concept for the period after 2025 in the committee. Several special votes are expected in the final report of the round. In the case of essential parameters, the round of ten could only agree on wide corridors. Despite the many cancellations currently, the presentation of the report by the pension commission is expected to take place at the end of next week as planned, as Heil told the "Wirtschaftswoche". He wanted to get good, goal-oriented ideas on the way before the 2021 federal election.
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