Pension 2022: Everything will change for seniors - and how younger people can now make better provision

Created: 01/03/2022, 05:21 AM

A lot will change in terms of pensions again in 2022.

© Abraham Gonzalez via www.imago-images.de

Corona hit the 22 million pensioners in the country hard.

The hoped-for pension increase was canceled in 2021 - but the new year will be all the better.

Munich - pensions are rising sharply! According to the current status, there is a solid increase of 4.4 percent in the west and even 5.1 percent in the east. And there is more good news: The retirement age remains at 67 - and the current pension level is guaranteed. This is what the coalition agreement of the new traffic light government provides. In addition, the basic allowance for pensioners increases. And that means for seniors who have to pay taxes: More than the gross amount remains. What is still going to change - also with regard to old-age provision for everyone between 20 and 60 - here are the most important facts.

The statutory pension insurance in Germany is financed according to the pay-as-you-go principle.

That means: Today's employees finance the benefits for retirees with their contributions.

Nothing fundamental should change about that.

However, the new government plans to build up a capital stock of ten billion euros, which should help stabilize the level of pensions and contributions.

Capital stock of ten billion euros: what that means

Ten billion euros in the capital stock is initially not much.

But if you look at the sum as an entry into partial funding, the measure can have a positive effect in the longer term.

What that means:

For today's 50 plus generation, the establishment of the fund is unlikely to change anything.

In the younger generation, the development remains to be seen.

It would be important here whether the fund - which has not yet been planned - is opened for payments by insured persons.

So whether individual claims can also be acquired from the fund

"Improvements for disability pensioners": What that means

The perhaps clearest stipulation in the coalition agreement received relatively little attention: "We want to implement improvements for pensioners with disability pensioners." Securing regular old-age pensions, "existing cases" have not benefited so far.

Long-term disabled people have been excluded from up to three "improvement rounds" in the EM pension.

What that means:

The innovations will mean a significant increase in pensions for many long-term disabled people.

It is to be expected that this will be granted without submitting an application.

"Activate the catch-up factor in the pension calculation from 2022": What that means

"We will reactivate the so-called catch-up factor in the pension calculation in good time before the pension adjustments from 2022."

What that means:

The pension cut that was not made in 2021 will be partially offset against the arithmetically due 2022 pension increase.

That is why the full pension increase is not even higher (the forecast for the West was originally 5.1 percent).

However, this not only affects current retirees, but also the coming generations of retirees.

Because the annual pension adjustment is always based on the previously given current pension value.

Corona makes it possible: Additional earnings allowed for recipients of early retirement benefits

Currently - due to the coronavirus - for recipients of an early retirement pension, an additional gross annual income of 46,060 euros is allowed - without the pension being reduced.

The generous regulation can motivate some employees in cohorts close to retirement to revise their “exit plans”.

After all, many can now draw wages and the full early retirement at the same time.

In this way, you can set aside tens of thousands of euros in a short period of time in order to fulfill certain wishes at an “early age”.

Pension stable - and still not enough?

An example

According to the coalition agreement, the pension will remain stable. For most, however, it is not enough for a carefree retirement. Without additional provision, many people are threatened with poverty in old age. The pension level is currently 48 percent. And that's how it should stay. So that there is no misunderstanding: This does not mean that retirees receive 48 percent of what they previously earned as employees. The pension level is a statistical measure. But there is seldom more than 55 percent of the last net income. Insured persons from the age of 27 can find reliable information in their pension information. How much you need in old age varies from person to person.Experts set the pension requirement in retirement at around 80 percent of the previous net income - this goal is never achieved by the statutory pension.

Example:

Anyone who last earned EUR 2,000 net full-time as an employee should have around EUR 1,600 net available in retirement, if possible.

If only an old-age pension of 1,100 euros (= 55 percent) beckons, there remains a pension gap of 500 euros.

Anyone who wants to fulfill their wishes (travel, theater, restaurant) in old age has to fill this gap with additional provision.

According to the latest pension report, 34.5 percent of employees between 25 and 65 do not have any additional pension plans.

And those who take precautionary measures often don't mess, they just mess up.

Private provision - and that as early as possible: shares and Riester

As much as employees pay into the statutory pension as an employee's share, they should invest in their additional retirement provision - and do so as early as possible.

With a gross of 2000 euros, that is 186 euros per month, calculates the pension expert Werner Siepe.

And adds: "Of course, only those who can." There is no universal recipe for this type of preventive care, but there are tips:

Shares:

"If you are young, you should focus on share-based forms of investment in addition to the statutory pension," says Siepe.

ETF savings plans or ETF-based insurance can be considered.

Riester:

"There is no getting around the Riester pension for those with large children," explains the financial mathematician.

"You should take this funding with you."

Employer funding - new obligation from January

From January, employers are obliged to subsidize old company pension contracts (direct insurance, pension fund, pension fund).

This subsidy must be 15 percent of the employee's savings rate.

Compensation payment - special payment opportunity for insured persons aged 50 and over

For those aged 50 and over, the pension fund offers the opportunity to make voluntary special payments.

This can be used to compensate for deductions in the event of early retirement.

One pension point will be credited to you for € 7236 in 2022.

That is 491 euros less than this year - and brings a surcharge of 34.19 euros per month at the start of retirement.

Important deadlines in 2022

The deadline for the

2021

for pensioners is

December

21, 2022.

New retirement:

Anyone who retires in 2022 must apply for it in good time.

That means: Submit all forms at least three months before retirement