Pensions 2024: Increase for disability pensioners and prospect of a general increase

Pensions 2024: Increase for disability pensioners and prospect of a general increase

According to a report from www.fr.de, the New Year 2024 is getting closer and there is positive news for pensioners. Disability pensioners will definitely receive more money, but old-age pensioners could also expect a significant increase in their salaries.

In the last ten years, the salaries of pensioners with reduced earning capacity have already experienced a considerable increase. They have increased by almost 60 percent to an average of 1,065 euros per month. In comparison, the average gross disability pension in 2013 was only 678 euros per month.

One reason for this increase, in addition to the annual pension adjustments, is the extension of the eligibility period since 2014. This has been extended several times and now applies up to the standard retirement age of 65 years and 8 months, which was set in 2018. As a result, people with reduced earning capacity who receive a pension for the first time are treated as if they had continued to work with their previous average income until they reached the standard retirement age. In addition, reductions in income in the last four years before the reduction in earning capacity no longer have a pension-reducing effect.

However, a group of pensioners with reduced earning capacity has been disadvantaged for a long time. These are long-term disabled people who have a significantly shorter insurance period and therefore received significantly less money. But this group can now also look forward to a monthly supplement. In order to receive the supplement, the receipt of the disability pension must have begun between January 1, 2001 and December 31, 2018 and must have been received continuously until June 30, 2024. Old-age pensions that are directly linked to the pension due to disability also receive the additional amount. According to the Federal Ministry of Labor and Social Affairs (BMAS), around three million pensioners will receive the supplement.

The amount of the supplement depends on the retirement period. If the pension starts between January 1, 2001 and June 30, 2014, the surcharge is 7.5 percent of the pension on June 30, 2024. If the pension starts between July 1, 2014 and December 31, 2018, the surcharge is 4.5 percent of the pension on June 30, 2024. On average, the surcharge causes an increase of 70 euros Start of pension by June 30, 2014 and 40 euros if pension starts after this date.

But all other pensioners could also expect an increase in their salaries in the new year. Economists expect pensions to increase by 5.5 or 6 percent. The adjustment of pensions depends on wage developments in Germany. When wages rise, pensions also rise. In the second quarter of 2023, the nominal wage index was 6.6 percent, in the first quarter it was 5.6 percent. With tariff increases in many industries, this trend is likely to continue in the second half of the year.

The increase in pensions in 2024 is therefore expected to have a positive impact on the market. Retirees could have more purchasing power, which could lead to an increase in consumption. This could in turn strengthen the retail sector. In addition, increasing pensions could lead to an increase in savings-related consumption, as retirees may have more money to invest.

Source: According to a report by www.fr.de