Pension increase in 2023: How much more money is there and what do pensioners have to consider? Everything financial professionals need to know.

Pension increase in 2023: How much more money is there and what do pensioners have to consider? Everything financial professionals need to know.

According to a report by www.mainpost.de, pensions in Germany will rise significantly higher from July 1, 2023 than originally assumed. In the west, pensions rise by 4.39 percent and in the east by even 5.86 percent. The pension increase has a direct impact on the amount of pension payments, depending on the current pension amount and where you live.

According to the information provided, a table shows how much more pension recipients will receive from July 1, 2023, depending on the current pension level and whether they live in West or East Germany. Pensioners with higher pension benefits will therefore see a significant increase in their pension payments due to the pension increase.

It also notes that pensions are expected to rise by a total of 43 percent by 2036, with an average increase of 2.6 percent per year. However, it should be noted that the current high inflation is significantly weakening the benefits for pensioners.

It is important to note that the pension increase, which ensures more money for people in old age, is weakened by the high current inflation. Despite the regular pension increases, people should think early on whether they have enough money in old age and whether there is a pension gap. One option for private retirement provision would be the citizen's pension.

Pensioners whose income may not be sufficient in old age must observe the additional income limit and, under certain conditions, can apply for up to 5,000 euros from the hardship fund. It is important to emphasize that contributions and taxes are still deducted from the pension, and it is therefore advisable to also think about your tax return as a pensioner.

The pension increase also has an impact on pension insurance contributions, the rate of which will remain fixed at 18.6 percent until 2026 and will not increase to 19.3 percent until 2027. It is important that contributors apply for the pension and need their pension insurance number to do so.

The pension increase therefore has a positive impact on pension payments, but tax and financial aspects must also be taken into account to ensure that the pension payments can be used effectively. The pension increase also has an impact on pension insurance contributions, the rate of which will remain fixed at 18.6 percent until 2026 and will not increase to 19.3 percent until 2027. It is important that contributors apply for the pension and need their pension insurance number to do so.