Start Finance Pensions increase by more than three percent

Pensions increase by more than three percent

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From July, the pensions will rise noticeably. The approximately 20 million retirees receive about three percent more money in the West, almost four percent in the East. Annual cost of the step: around eleven billion euros.

The approximately 20 million retirees in Germany will receive significantly more money from the middle of the year. Payments in western Germany increased by 3.18 percent as of July 1, and even by 3.91 percent in the east. The Federal Cabinet approved an appropriate regulation of the Ministry of Social Affairs.

With the increase, the Ostrenten continue to approach the West. The pension value in the east rises to 96.5 percent of the western value. By the year 2024, he will be gradually increased to 100 percent due to a law from 2017.

Heil praises good development in the labor market

The pension level rises slightly to 48.16 percent. As a ratio of the pension to the average wage, there is information about the hedging power of the pension. The increase in pensions resulting from an automatism stems mainly from the positive wage development.

The pensioners would have „part in the good situation on the labor market and the wage increases of the past,“ said Federal Labor Minister Hubertus Heil (SPD). The volume of the pension adjustment of eleven billion euros annually also show that „Germany is an economically strong country that can afford a reliable old-age insurance,“ added Heil.