Pension increase in Germany 2024: What financial experts recommend

Pension increase in Germany 2024: What financial experts recommend

According to a report by www.fr.de,
German pensioners can look forward to the prospect of a significant increase in their salaries. How much more there will be for you as a result.

A very significant increase in pensions in Germany by 3.5 percent is expected next summer. This emerges from the draft report on the federal government's pension insurance. However, the final value for the increase on July 1, 2024 has not yet been determined and will not be determined until spring.

The forecast for the coming year is therefore below the level of the increase from which around 21 million pensioners benefited on July 1st of this year. At that time, pensions were increased by 4.39 percent in the west and 5.86 percent in the east. Da der Rentenwert in den neuen Bundesländern mit dieser Maßnahme an das Niveau im Westen angepasst wurde, erfolgt die jährliche Anpassung künftig einheitlich.

An increase in pensions can have various effects on the market and the financial industry. On the one hand, the purchasing power of pensioners increases, which can have a positive impact on consumption and thus on the economy. On the other hand, higher pension spending could lead to a strain on the pension system and a possible increase in pension contributions. This could put pressure on employers and employment and lead to changes in the labor market.

However, there are also unfavorable prospects for newly minted pensioners, as pension levels are showing a slight downward trend. In particular, people with low wages and insecure work in the East in the 1990s could be affected and lead to pension levels falling further. This could lead to social and economic challenges in the long term.