Pension increase 2024: Bigger than expected - payment delayed

Pension increase 2024: Bigger than expected - payment delayed

The pension will increase by 4.57 percent from July 1, 2024, which is significantly higher than the forecast increase of 3.5 percent. This pension adjustment is above four percent for the third year in a row and exceeds the inflation rate for the first time in two years. The pension adjustment is carried out uniformly nationwide because the pension value in the east already corresponds to the value in the west. Labor and Social Affairs Minister Hubertus Heil describes the pension increase as positive, which is made possible by a strong labor market and good wage agreements.

Heil emphasizes that the pension adjustment after 34 years is a nationwide measure and underlines the equal appreciation of work in East and West. Pension package II is intended to stabilize retirement benefits in the long term. This enables future contributors to be relieved and is intended to ensure that the younger generation also benefits from economic growth.

Despite the positive development, there is also criticism of the pension increase in summer 2024. Critics complain, among other things, that a certain group is particularly burdened and that pensions are still below the European average level. The payment of the pension increase is delayed for many pensioners, especially for those who applied for their old-age pension after April 2004. This group will only receive the pension plus transferred to their account on July 31, 2024, regardless of the amount of their pension.