Not everyone thinks this good news is good: pensions are set to rise sharply in July - also because one of Merkel's ministers tweaked the tax formula in 2018.
A comment by Georg Anastasiadis.
Pensioners can look forward to a 5.2 percent higher pension from next July. You benefit from the good development of macroeconomic incomes after overcoming the corona crisis. The retirees can also thank SPD Labor Minister Hubertus Heil. In 2018, he enforced that retirees not only do not have to fear a negative round, as would have been due in the corona year, but are also spared from a later offset. In plain language: in 2021, unlike for many employees, there was only a zero round for retirees instead of a minus. In return, they will be able to fully participate in the upswing in 2022.
Many find this unjust, such as the CDU Economic Council. He speaks of a “grotesque” asymmetry at the expense of the working population. But there is no reason for too much excitement. Even so, the income of retirees does not rise to the sky: almost the entire increase of five percent is consumed by inflation. Above all, it affects poorer pensioner households who have to spend an above-average amount of money on heating and food, where the price jumps are particularly sharp. In addition, the state takes back part of the higher pensions through taxes. This in turn affects better-off pensioners who have, for example, rental income.
By the way, a large part of the galloping inflation is due to the European Central Bank, which - with the blessing of politicians - ensures with its glut of money that the EU states can finance their debts cheaply.
FDP boss Lindner rightly calls this an “impoverishment program, especially for people without high material assets”.
Politicians in particular should be very careful with debates of envy at the expense of pensioners.