Pension increase in 2024: forecasts exceeded - criticism remains

Pension increase in 2024: forecasts exceeded - criticism remains

The pension increase in summer 2024 exceeds forecasts, as the Ministry of Labor and Social Affairs has announced. Starting July 1, 2024, retirees will receive a 4.57 percent increase. This marks the third year in a row that the pension adjustment has been above four percent and is above inflation for the first time in two years. A first nationwide increase will be carried out because the pension value in the East has already reached the West value.

Federal Labor and Social Affairs Minister Hubertus Heil described the pension increase as a positive development based on robust labor market conditions and positive wage agreements. In order to ensure long-term stable retirement benefits, the pension adjustment is stabilized by Pension Package II. Heil emphasized the importance of stable pensions as the basis of the social market economy and a guarantee for stability and social peace.

Despite the positive development, the pension increase was not spared from criticism. The Bundestag member Sahra Wagenknecht was critical of the pension increase and described it as inadequate. She pointed out the loss of purchasing power in recent years and emphasized the discrepancy between pension and wage developments. In view of high social spending, some politicians are calling for a cut in the social budget to finance the Bundeswehr, but Chancellor Olaf Scholz rejects this proposal and emphasizes the importance of the minimum pension level.