Monday, 13.11.17 , written by Anja Schlicht In November last year, the draft Pension Insurance Report 2017 already indicated that retirees could expect a significant increase in their 2018 pension. Now, the new minister of employment Hubertus Heil (SPD) has made the pension increases more concrete from July. Depending on the state, seniors’ old-age allowances increase from 3.22 percent to
- The annual pension increase will break the three percent mark in 2018.
- Seniors will receive up to 3.37 percent more pension from 1 July 2018.
- These final figures on pension adjustment, Minister of Labor Heil now presented.
After the pension increase in the west in the past year was well below the East German level, the pension increase in 2018 will amount to more than three percent for the new and old federal states. This was already apparent from the draft of the Pension Insurance Report 2017 and has now been confirmed by the new Minister of Labor. The pension adjustment is even better than predicted in the autumn. At the time, it was said that pensions could rise 3.23 percent in the east of the republic and 3.09 percent in the west.
Heil announced that pensions will increase by 3.37 percent in the new federal states on July 1, 2018, and by 3.22 percent in the old ones.
Update April 25, 2018: The Federal Cabinet today approved the pension increase for July 2018.
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Pensions increase by an average of 2.2 percent per year by 2031
Irrespective of the current pension increase in 2018, the pension insurance report is a positive indication of future pension development. According to it, pensions should rise by more than 35 percent by 2031 . On average, this means an annual adjustment of 2.2 percent.
Heil said to the pension adjustment in 2018: “The good situation on the labor market and the wage increases of the past lead to better pensions again this year.” The pension value East increases from the previous 95.7 percent to 95.8 percent of the West pension value. By 2024, the pension value of the new federal states should rise to 100 percent of the western value, announced Heil.
Pension increase 2017 and 2018 in comparison
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