Again, pensions in Germany are expected to increase significantly. But how much more money will there actually be for retirees? An overview:
Kassel – With rising energy prices, living in Germany is also becoming more expensive. Last but not least, retirees notice this. The desire for financial security is great. An increase in pensions is expected in 2023, which should offer the same to retirees. And other things will change for retirees in 2023.
But how high should the increase for pensioners actually be in Germany and how should pensions develop in the coming years?
Increase in pensions in Germany in 2023: there could be much more money
Right now, retirees can expect a significant increase. According to model calculations in the Federal Government’s Pension Insurance Report for 2022, pensions in West Germany around around 3.5 percent climb. in the East of the country also around 4.2 percent. However, clarity on the exact amount can only be obtained in the spring, according to the federal government. Because first we should wait for the data on wage trends.
And when is the increase expected? As of now, the pension increase is expected to take effect starting in July 2023. Retirees can therefore expect this pension plus:
Pensions in Germany will increase significantly in 2023: what will happen in the coming years?
According to the Pension Insurance Report, pensions are expected to increase by a whopping 43% by 2036. This translates into an average rate of increase of 2.6%.
The pension level is expected to remain above 48% until 2024. “The purchasing power of the pension is expressed in the pension level: it is a standard pension measured on the average salary of an employee”, defines it the federal government.
Criticism of Germany’s pension increase in 2023
“Pensions always lag behind wages by more than a year; Therefore, in the event of sudden price increases and resulting higher wage increases, it is not enough for pensions to increase significantly by July 2023 or even 2024,” said Anja Piel, member of the board of directors of the DGB, according to the German news agency.The German Social Association was also dissatisfied: “The increase in inflation must also be reflected in the adjustment of pensions,” said SoVD CEO Michaela Engelmeier, according to dpa.Therefore, the planned increase in pensions it is not enough. Meanwhile, retirement at 63 is becoming increasingly popular. This can lead to further problems. (Sophia Lother)
