Pension insurance 2024: This will change for all pensioners, both legally and voluntarily insured

Here we will explain to you what changes pensioners and those with statutory and voluntary pension insurance will face next year.

There will be various changes to pension insurance in the new year 2024. The German Pension Insurance Federation points this out. 2024 will be the last year in which there are still differences between the old and new federal states when calculating pensions – but these are now only minimal.

The most important news for all employees who pay into statutory pension insurance: the contribution rate remains stable. As in 2023, it is 18.6 percent. “According to the federal government’s pension insurance report, the contribution is expected to remain stable until 2027,” says Katja Braubach from the German Pension Insurance Association. The federal government does not expect an increase until 2028.

The regular retirement age will rise to 66 at the beginning of next year. This applies to insured persons born in 1958. For those born later, the entry age increases in two-month increments. The regular age limit of 67 will be reached in 2031.

In the case of the old-age pension for those who have been insured for a particularly long time, known as the “pension at 63”, the age limit for those born in 1960 rises to 64 years and four months. For those born later, the entry age will continue to increase until the applicable age limit of 65 will be reached in 2029.

Anyone who has been insured in the statutory pension insurance for at least 45 years can claim the discount-free old-age pension for those who have been insured for a particularly long time. Early use, even with discounts, is not possible for this type of pension.

Anyone who has been insured in the statutory pension insurance for at least 35 years can claim the old-age pension for those who have been insured for a long time from the age of 63. The old-age pension is subject to a deduction. This is 0.3 percent per month that the pension is claimed before the regular retirement age is reached.

“However, any resulting deductions can be offset by special payments from the age of 50 onwards,” explains Braubach. “In this case, you pay voluntarily into the statutory pension insurance. The additional contributions can be individually adjusted.”

Since the regular retirement age will be gradually raised to 67 by 2031, the deductions for early retirement will also increase. For insured people born in 1961 who will turn 63 next year, the normal retirement age is 66 years and six months – with the earliest possible start of retirement at 63, the discount is 12.6 percent. For insured people born in 1960, the deduction was a maximum of twelve percent.

The additional earnings limits for pensions due to reduced earning capacity will increase in 2024. When drawing a pension due to partial loss of earning capacity, from January there will be an annual minimum additional earnings limit of 37,117.50 euros; for pensions due to full loss of earning capacity it is 18,558.75 euros.

“If the additional income exceeds the limit, 40 percent of the excess amount will be credited to the pension,” continues Brauchbach. However, it is important that working hours of less than three hours must be maintained for pensions due to total disability and working hours of less than six hours for partial disability. “Otherwise, the entitlement to a disability pension may be at risk despite compliance with the additional earnings limits.”

In 2024, the contribution assessment limit for pension insurance will rise from 7,300 euros per month to 7,550 euros in the old federal states and from 7,100 euros per month to 7,450 euros in the new federal states. It determines the maximum amount up to which earned income is taken into account when calculating pension insurance contributions. No contributions are paid for any income above this level.

2024 will be the last year with different contribution assessment limits for the old and new federal states. From 2025, a uniform contribution assessment limit will apply throughout Germany.

The minimum monthly contribution for voluntary insurance in the statutory pension insurance will rise from 96.72 euros to 100.07 euros on January 1, 2024. The maximum amount increases from 1,357.80 euros to 1,404.30 euros per month. There are no differences in the amount of contributions for voluntarily insured people in the old and new federal states.

All people who live in Germany, are at least 16 years old and are not compulsorily insured in the statutory pension insurance can pay voluntary contributions to the statutory pension insurance. Under the conditions mentioned, the payment of voluntary contributions is also possible for Germans residing abroad.