“Noticeable increase” in pension announced – table shows how much money there will be in 2023

Created: 2022-12-13 3:19 p.m

By: Hannes Niemeyer

Positive news for pensioners in Germany.

Payments are expected to increase sharply in 2023.

A table shows by how much.

pensioners in Germany can

expect an increase in their salaries in the coming year.

As the newspaper writes on Saturday evening (online) based on the new pension insurance report, pensions are expected to increase by 3.5 percent in western Germany and by 4.2 percent in eastern Germany by July 1, 2023.

Pensions will increase in 2023: there is so much more money

The average pension payment is currently 1089 euros.

With the increase by the percentages mentioned above, people in the west should be able to look forward to 38 euros more, people in the east even to almost 46 euros more.

Federal Minister of Labor Hubertus Heil (SPD) told the newspaper: "According to the data now available, pensioners can again expect a noticeable increase in pensions in the summer."

Pensions are linked to wages.

Since the pension experts expect wage growth of 4.5 percent for this year and further increases of 5 percent for the coming year and 4.7 percent for 2024, the pension will also increase.

"It is important to me that the pension also benefits from this," Heil told Bild am Sonntag.

There are new rules for pensions from the age of 63.

(symbol photo) © Sebastian Kahnert / dpa

Pensions at a glance: there will be so much more from July 1, 2023

Good news for contributors to statutory pension insurance: the contribution rate remains stable

According to the new pension insurance report, pensions are expected to increase by 43 percent by 2036, which would correspond to an average rate of plus 2.6 percent per year.

The high expected plus for the coming year is therefore above average, but will be eaten up by the high inflation.

Meanwhile, there is reassuring news for contributors to statutory pension insurance.

The contribution rate will remain stable at 18.6 percent until 2026, with an increase to 19.3 percent planned for 2027.

According to Heil, this is "good news that working people can rely on the fact that the contribution will not increase".

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In addition to the contribution rate: the pension level will also be stable in the future - but Minister Heil wants reforms

In addition to the contribution rate, the pension level also remains stable.

It is currently 48.1 percent.

It is expected to remain at just over 48 percent until 2024 and only drop below that in 2025.

In this case, the legal stop line applies, which states that the pension level must be at least 48 percent with a contribution rate that must not exceed 20 percent.

The treacherous thing: the said guarantees are only valid until 2025, without an extension the level could continue to fall in the future.

The report speaks of a fall to 44.9 percent by 2036.

That is why Minister of Labor Heil also wants reforms "to keep the pension level stable".

In Scandinavia the pension system is different.

Sweden, for example, does better than Germany when it comes to pensions.