Pensions increase in Germany: About 21 million retirees in Germany can expect a significant addition in benefits in 2022.
The largest increase in pensions in Germany in almost 40 years
Good news for some 21 million retirees in Germany : Pensions in western Germany will shoot up by 5.2% in July 2022. In the east of Germany, they will increase by 5.9 percent.
In the west of Germany, pensions are likely to shoot up the most in the last 40 years. In 1983, there was an increase of 5.59%. In eastern Germany, pensions recently were boosted by 5.95% in 2016 – in line with the planned 2022.
This year there were no increases in pensions in the west, while in eastern Germany there was only an increase of 0.72%. The reason was the decline in premium income. The opposite trend has been observed for several months now.
According to the draft pension insurance report, until September the premium income in the current year increased by approximately 3.7% compared to the same period of the previous year.
It is estimated that the monthly pension of EUR 1,000, based solely on Western contributions, will increase by EUR 52 from 1 July 2021, and by EUR 59 with Eastern contributions.
Another increase in pensions in Germany probably already in 2023
In 2023, pensions will increase again. In the west of Germany, pensions could go up by by 4.9 percent, in the east by 5.7 percent. However, assumptions about economic development, and hence pension finances, are uncertain as development depends on the effects of a pandemic.