Pension increase 2024: Summer pension surprisingly increases by 4.57 percent

Pension increase 2024: Summer pension surprisingly increases by 4.57 percent

The pension increase in summer 2024 exceeds expectations and will bring a pension increase of 4.57 percent from July 1, 2024. This adjustment is above four percent for the third year in a row and above current inflation. For the first time, the pension adjustment will be carried out uniformly nationwide, as the pension value in the east has already reached the value in the west.

Federal Labor and Social Minister Hubertus Heil (SPD) describes the pension increase as positive for pensioners. The pension increase was made possible by a stable labor market and good wage agreements. This measure is seen as a milestone, representing a uniform increase after 34 years since German unification. Heil emphasizes the importance of a stable pension for the social market economy and is launching Pension Package II in order to relieve the burden on future contributors and maintain intergenerational fairness.

Despite the positive development, there was also criticism of the pension increase. Bundestag member Sahra Wagenknecht described the increase as inadequate. She sees the quality of life of pensioners at risk due to the loss of purchasing power, as pension adjustments lag behind wage developments. Pensions at European level are also below the German average level. There is also criticism of the high social spending, with Finance Minister Christian Lindner wanting to freeze government spending.

Chancellor Olaf Scholz (SPD) contradicts a proposal to freeze social spending in order to finance the defense budget. He emphasizes the importance of stable pensions and advocates for a minimum pension level of 48 percent of average income. Scholz is positioning himself against cuts in pensions and other social benefits in order to achieve NATO's two percent target.