Pension insurance report: Payments continue to rise
The pensions of around 21 million pensioners are also likely to rise in the coming years. Pensions are set to rise by a total of almost 43% by 2037, according to the Pension Insurance Report 2023, which was approved by the Federal Cabinet in Berlin. This corresponds to an average rate of increase of 2.6 percent per year.
It was previously known that a nationwide pension increase of around 3.5 percent was expected next July. As key data, the pension insurance report states that a reserve of around 44.5 billion euros is expected in the pension fund at the end of 2023. The contribution rate is expected to remain stable at 18.6% until 2027. By 2030, the contribution rate will rise to 20.2% due to the increased number of baby boomers entering retirement. By 2037, the contribution rate is expected to be 21.1 percent.
Pension insurance: never before have so many people been in employment
The President of the German Pension Insurance Association, Gundula Roßbach, saw the report as proof of the good position of the statutory pension. "The positive financial situation of the pension insurance is mainly due to the fact that the labor market is proving to be extremely robust," Roßbach told the German Press Agency in Berlin.
With 46.04 million employees, there have never been as many people in employment as in the third quarter of 2023. Wages and salaries have also risen noticeably this year due to high collective wage agreements, said Roßbach. "In terms of pension insurance income from contributory employment, there was an increase of 5.4 percent for the months of January to October 2023 compared to the same period last year."
A spokesperson for the Ministry of Labor pointed out that the forecasts do not yet take into account the plans for an announced pension reform.
The Federal Cabinet has approved the Pension Insurance Report 2023, which predicts a rise in pensions by 43% by 2037, mainly due to reserves in the pension fund. This increase is expected to be facilitated through contributions, with the contribution rate remaining stable at 18.6% until 2027 and then rising to 20.2% by 2030. (From the first text)
Given the robust labor market, the President of the German Pension Insurance Association, Gundula Roßbach, views the report positively, stating that the pension insurance's good position is largely due to high employment and wage increases. (From the second text)
In both sentences, 'Pension', 'Pension insurance', and 'Cabinet' are used in relation to the pension system, its management, and the government's involvement.
Source: www.dpa.com
