Pension increase in 2024: Experts predict a significant increase due to increased wages and high inflation

Pension increase in 2024: Experts predict a significant increase due to increased wages and high inflation

According to a report by www.fr.de,
The statutory pension is expected to be significantly adjusted in the summer of 2024, probably by 3.5 percent. The pension adjustment is due to increased wages and inflation. The exact amount of the pension increase will be announced in the spring, with the Ministry of Labor and Social Affairs promising a date at the end of March.

Wage development is a decisive factor for pension adjustment and in 2023 wages rose by 5.6 percent, 6.6 percent and 6.3 percent in the first three quarters. Experts therefore predict a possible pension increase of 5 to 6 percent. However, this significant adjustment has been criticized because the high inflation is particularly affecting pensioners, who often have to make do with low pensions. Social associations and political parties are therefore calling for an immediate increase in pensions to compensate for the increased cost of living.

The possible pension increase is expected to have an impact on the market and the financial sector. A significant pension adjustment could lead to increased consumption among pensioners because they have more financial resources at their disposal. This could have a positive impact on certain sectors such as retail and healthcare. At the same time, financial institutions could develop new products and services to help retirees manage their increased retirement income.

However, it remains to be seen how the government will respond to calls for an immediate pension increase and to what extent the pension adjustment will affect the broader economy and financial system.