Pensions expected to rise further
The approximately 21 million pensioners are also likely to receive higher pensions in the coming years. A nationwide pension increase of around 3.5 percent is expected next July, according to the German Pension Insurance Association in Würzburg. Its chairman Alexander Gunkel confirmed reports from last week. The increase is mainly due to the average increase in wages.
Pension adjustments of 2.6 to 3 percent are to be expected in the coming years, said Gunkel. This will depend on whether the German government presents a further pension reform package as announced. With the pension package announced by the traffic light government, the plan is to permanently secure an existing stop line for the pension level of 48% in relation to wages. At present, this so-called stop line applies to the level of protection of the statutory pension until 2025. At the same time, the long-term development of the contribution rate is to be stabilized by building up a capital stock.
Pensions in the east and west had already converged this year with an increase of 4.39% in the west and 5.86% in the east. Gunkel stated that the reason for the early alignment was that wages in the East had risen significantly more than in the West last year. Wage growth in 2022 was 4.5 percent in the West and 6.78 percent in the East.
Overall, according to Gunkel, the pension insurance expects income of 375.8 billion euros and expenditure of 374.7 billion euros in 2023. "The fact that a surplus is expected despite the tense economic situation is due to the unexpectedly sharp rise in income from compulsory contributions for people in employment," said Gunkel. The surplus will be transferred to the pension insurance reserve.
Pensioners are anticipating an increase of around 3.5% in their pensions next July, as stated by the German Pension Insurance Association's chairman, Alexander Gunkel. Furthermore, Gunkel suggested that pension adjustments of 2.6 to 3% could be expected in subsequent years, depending on the German government's implementation of a proposed pension reform package.
Source: www.dpa.com
