Pensions in Germany to rise by average of 5 percent next year
After seeing their benefits stagnate in 2021 due to the economic impact of the coronavirus pandemic, pensioners in Germany can look forward to an increase next year. The government is also changing the way benefits are calculated, which could mean a permanent increase for pensions in Germany.
More money in German pensioners’ pockets
Every year, the German federal government makes a so-called pension adjustment (Rentenanpassung), based on the development of salaries in the previous year. A few weeks ago it was announced that, as a result of falling wages in 2020, pensions would remain stable in the western federal states and rise marginally in the eastern federal states in 2021. A cut to pension benefits is legally ruled out by Germany’s pension guarantee.
However, with incomes projected to bounce this year as the country vaccinates its way out of the pandemic, German media are reporting that pensions look set to rise significantly on July 1, 2022 – by as much as 4,8 percent in western Germany, and 5,6 percent in the east – according to a government report seen by Bild.
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