Increase in east and west: pensions are to rise by more than five percent


Status: 02.11.2021 8:10 p.m.

The corona crisis broke German pensioners a zero round. According to media reports, they can expect higher salaries for the next year. In East and West Germany, they are to be increased by more than five percent.

The around 21 million pensioners in Germany can apparently expect a significant increase in their salaries. According to official estimates, pensions will rise by 5.2 percent in western Germany and by 5.9 percent in the east next July. This emerges from the draft pension insurance report 2021, which is available to the news agencies dpa and AFP.

If the pension increase is now estimated, a monthly pension of 1000 euros, which is based only on western contributions, increases by 52 euros on July 1, and the same pension with eastern contributions by 59 euros. The Deutsche Rentenversicherung wants to inform the public tomorrow about the expected pension adjustment and its financial situation.

Probably also an increase in 2023

This means that pensions in West Germany are likely to rise more sharply than they have been in almost 40 years. In 1983 there was an increase of 5.59 percent. In eastern Germany, pensions last rose in 2016 with an increase of 5.95 percent, comparable to that in 2022. This year, the corona pandemic brought pensioners a significant increase.

In the west there was a zero round, in east Germany an increase of 0.72 percent. The reason was the cyclical slump in premium income. A trend reversal had been emerging for months. According to the draft pension insurance report, premium income in the current year to September has risen by around 3.7 percent compared to the corresponding period of the previous year.

According to current estimates, there will also be a significant increase in salaries in 2023. In the west, pensions could then rise by 4.9 percent, in the east by 5.7 percent. However, the assumptions on economic development and thus also on pension finances are characterized by uncertainty, since the development depends on the effects of the pandemic.

“Pandemic survived well”

Experts from the pension insurance, the Federal Social Security Office and the Federal Ministry of Labor assume that the reserve of the pension fund will increase slightly this year. A sustainability reserve of around 37.2 billion euros is estimated for the end of the year. This corresponds to almost 1.6 monthly expenses. At the end of 2020 it was 37.1 billion. It should be noted that “the statutory pension insurance has survived the pandemic very well so far,” according to the draft pension insurance report.

According to the preliminary calculation, the contribution rate should remain stable at the current value of 18.6 percent until 2023. It is expected to rise to 22.3 percent by 2035.


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