Pension levels are falling: worrying developments for new pensioners - financial experts warn

Pension levels are falling: worrying developments for new pensioners - financial experts warn

According to new figures from the German Pension Insurance, the pension level in Germany is falling slightly, as an article on the fr.de website reports. A response from the Federal Ministry of Labor to a request from the Left Party in the Bundestag confirms this. New pensioners who retired in 2022 will receive an average of 15 euros less in pension per month compared to existing pensioners. New male pensioners in particular receive 98 euros less than existing pensioners. When it comes to new female pensioners, there are differences between the old and new federal states, with the latter receiving less pension. Left parliamentary group leader Dietmar Bartsch describes the state of the statutory pension as “very worrying” and speaks of a “fatal development”. He emphasizes that pension levels are not stable, as Chancellor Olaf Scholz claims, but are falling.

According to a report by fr.de, falling pension levels may have far-reaching effects on the market and the financial sector. A falling pension can lead to a decline in the purchasing power of pensioners, which can have a negative impact on consumption and therefore on the economy. In addition, pensioners could become increasingly dependent on state support, which could lead to a greater burden on the social system. Financial services companies could respond to declining pensions by adapting their offerings and products to meet the needs of lower-income retirees. For example, banks could offer loans with special conditions for pensioners in order to bridge financial bottlenecks. Retirement provision products such as private pension insurance could also see increased demand in order to compensate for falling state pensions.

It is important to note that this is a general analysis and speculation about possible impacts. Specific impacts may depend on various factors and are difficult to predict. Investors and market participants should keep an eye on current developments in the area of ​​pension insurance and adapt their investment strategies if necessary.

Source: According to a report by fr.de