Pension increase in 2024 exceeds forecasts: criticism of pension plus

Pension increase in 2024 exceeds forecasts: criticism of pension plus

The pension increase in summer 2024 exceeds the forecasts of the traffic light coalition, which had originally forecast an increase of 3.5 percent. Pensions will be increased by 4.57 percent from July 1, 2024, which, according to the Ministry of Labor and Social Affairs, means an adjustment above four percent for the third year in a row. This increase is above inflation for the first time in two years, and for the first time the pension adjustment will be carried out uniformly nationwide after the pension value in the east has reached the value in the west.

Federal Labor and Social Affairs Minister Hubertus Heil described the pension increase as positive news for pensioners. He emphasized that the robust labor market situation and positive wage agreements led to this decision. The first nationwide increase after 34 years since German reunification is viewed as a milestone. In order to stabilize retirement benefits in the long term, Pension Package II is being introduced to relieve the burden on the statutory pension and support future contributors.

Despite the positive development, the pension increase also met with criticism. Bundestag member Sahra Wagenknecht described the increase as inadequate and pointed out the loss of purchasing power in recent years. She criticized the fact that the pension increase could not keep up with wage developments and that German pensions would continue to be below the European average level. Chancellor Olaf Scholz firmly rejected proposals to cut pensions in favor of other spending and emphasized the importance of stable pensions for the social market economy and social peace.