No pension cut in 2024 due to budget freeze - German pension insurance creates facts

No pension cut in 2024 due to budget freeze - German pension insurance creates facts

According to a report by www.wa.de,

A rumor about possible pension cuts due to a budget freeze is causing unrest among retired people. However, the German Pension Insurance has made it clear that there will be no pension cuts. Pensions are regulated by law, so the current budget situation has no influence on pension payments.

The pension insurance receives subsidies from the federal budget, but these are also regulated by law and do not depend on the current budget situation. There are also legal protection clauses that ensure that pensions do not decrease, even if the wages and salaries underlying the pension adjustment have decreased.

The pension insurance providers also have financial autonomy and the pension insurance budgets are determined by the self-governing bodies, which means that the pension insurance works independently of the current budget situation.

Based on these facts, it can be assumed that pensions will not be reduced in 2024 either. On the contrary, a pension increase is even forecast, although this could be lower than in 2023. Overall, pensioners can therefore rely on stable pension payments despite the budget freeze.