Expert predicts mega pension increase for 2024: Pensions will rise by up to 7.5 percent

Expert predicts mega pension increase for 2024: Pensions will rise by up to 7.5 percent

According to a report by www.merkur.de, there are positive forecasts for pensioners regarding a possible “mega pension increase” in 2024. Pension expert Peter Knöppel sees great potential for a significant pension increase based on the current wage development and the net wage index for 2023. The last pension increase was 3.5 percent, while Peter Knöppel predicts a much higher increase. Economics Minister Robert Habeck also plans to pay pensioners more money. The federal government is currently assuming a pension increase of 3.5 percent for 2024. However, there remains a lot of speculation and projections before the official pension values ​​are announced.

The positive wage development in 2023, which led to a net wage index of around 6.2 percent, could result in a significant pension increase. Economist Prof. Dr. Bernd Raffelhüschen estimates an increase in pension value of 5 to 6 percent as of July 1st as possible. Nevertheless, all figures are currently nothing more than estimates, as there is room for speculation until the pension values ​​are announced in March by Labor Minister Hubertus Heil.

However, the pension increase has also been criticized because high inflation is particularly difficult for pensioners. Social associations such as Die Linke are calling for an immediate increase in pensions to compensate for the cost increases caused by inflation. The social association VdK also criticizes the “pension fund as a self-service shop” and calls for concrete measures from the government, including a one-off surcharge of 300 euros for pensioners.

In the event of a significant increase in pensions, expenses for the pension fund could increase significantly, which would have an impact on the market and the financial sector. A higher pension increase could help to boost consumption, but could also lead to increasing burdens on companies that contribute to pension insurance. Overall, pension development is an important factor for the German economy and the financial sector, as it has a significant influence on citizens' purchasing power and saving behavior.