This year's pension adjustment cannot keep up with inflation.
But if you compare the figures from previous years, the increases compensate for the loss this year.
Munich – The increased cost of living is currently worrying many people in Germany.
Inflation hit record highs last year.
The prices for energy and food have risen immensely.
This becomes a particular problem for those who are dependent on the state pension and cannot ask for a raise or take on another job.
Pension vs. inflation: 2022 significantly less money for seniors
But how does the situation actually look for pensioners when inflation is so high?
From July, statutory pensions will increase by 4.39 percent in the west and 5.86 percent in the east.
However, this increase cannot keep up with the current inflation rate of 7.4 percent (as of March 2023).
“The pension adjustment is currently lagging behind inflation,” the Federal Ministry of Labor also knows.
This is also shown by calculations by the ifo Institute for the ARD magazine
Plusminus
.
Accordingly, real gross pensions slipped into negative territory from 2021 to 2022.
This means that the actual increase in pensions minus inflation became a decrease.
As a result, pensions fell by 3.96 percent in the West and by 3.25 percent in the East.
The level of pensions in Germany is primarily based on wage developments.
+
If you look at pension trends over a longer period of time, real pensions have risen.
© Patrick Pleul/dpa
Past pension growth offsets loss
But the situation is not quite as dramatic as these figures appear.
If you look at pension trends over a longer period of time, real pensions have risen.
From 2010 to 2022, West pensions rose by an average of 0.26 percent annually in real terms.
In the case of East pensions, it is even 1.14 percent, as
tagesschau.de
explains.
These gains thus slightly offset the losses this year, as inflation rates were very low, particularly between 2015 and 2020.
This is also confirmed by Friedemann Lucius, head of the Institute of Actuarial Experts for Pensions (IVS).
"The statutory pensions are very well protected against inflation," Lucius told
tagesschau.de
.
The situation is different with company pensions.
Although these are often based on the inflation rate, employees often have to ask their employer to make adjustments themselves.
In addition, the increase can fail, for example, if the company is in difficulties.
(ph)
List of rubrics: © Patrick Pleul/dpa
