According to the calculations of the German pension insurance, pensions will increase at an above-average rate next year. According to the pension insurance report, which is available to “Bild am Sonntag”, pensions will increase by 3.5 percent in the west and 4.2 percent in the east as of July 1, 2023. By 2036, pensions will increase by a total of 43 percent. This corresponds to an average growth rate of 2.6 percent per year.
“According to the data now available, pensioners can again expect a noticeable increase in pensions in the summer,” said Labor Minister Hubertus Heil (SPD) to “Bild am Sonntag”. For this year, the pension experts are expecting wage growth of 4.5 percent, 5 percent for 2023 and 4.7 percent for 2024. Heil: “It is important to me that the pension also benefits from this.”
According to the report, the contribution rate will remain stable at 18.6 percent until 2026. In 2027 it will rise to 19.3 percent and by 2030 to 20.2 percent. For 2036, the pension insurance predicts an increase to 21.3 percent. Minister Heil is pleased that “contrary to many forecasts – we have managed to keep the contribution rate stable for longer than expected”. Especially in the current cost crisis, it is “good news that working people can rely on the contribution rate not increasing”. In the 2021 pension insurance report, the experts had forecast that the amounts would have to increase in 2024. According to Heil, the fact that this is not happening now is because “we have managed to keep the labor market more than stable despite the crises”.
The pension level is currently 48.1 percent and, according to the pension insurance report, will remain at just over 48 percent until 2024. In 2025 it will fall below that, and then the legal stop line will apply, which states that the pension level must be at least 48 percent and the contribution rate must not exceed 20 percent. If the stop line is not extended beyond 2025, the pension level will drop to 46.6 percent in 2030 and 44.9 percent in 2036.
Minister Heil therefore announced the next pension reform to “Bild am Sonntag”: “Next we will take care of keeping the pension level stable in the long term, well beyond 2026. We will also pay attention to the development of contributions. By building up a capital stock, we want to stabilize the contributions in the long term.” To this end, Heil is currently negotiating with Federal Finance Minister Christian Lindner (FDP).
When it comes to pensions, there are major regional differences. The pension gap between women and men in western Germany is particularly large. Another long-term trend seems to have stopped for the time being.
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