According to a media report, statutory pensions in Germany are expected to increase by more than three percent in the coming year. This emerges from the draft pension insurance report 2019, from which the newspapers of the editorial network Germany (RND) and the agency dpa quote. As of July 1, 2020, pension growth of 3.92 percent is expected in eastern Germany and 3.15 percent in western Germany.
A monthly pension of 1,000 euros, which is based only on contributions from the West, is estimated to increase by 31.50 euros, an equally high pension with eastern contributions of 39.20 euros.
From the coming year on, pensions will increase by a total of around 36.5 percent by 2033, according to the RND newspapers in the report of the Federal Ministry of Labor. This corresponds to an average increase of 2.2 percent per year. The pre-tax hedging rate, which expresses the relation between pensions and wages, is currently 48.2 percent.
The legally decided by the coalition stop line, which is to prevent a lowering of the pension level below 48 per cent by 2025, will grab according to the pension insurance report 2021 for the first time.
By 2030, however, the security level would sink to 45.6 percent, it said. "The drop in the level of protection before taxes makes it clear that the statutory pension alone will not be sufficient in the future to continue the standard of living in old age," it continues.
The financial situation of the pension insurance, however, remains good, as the newspapers continue to report. By September, premium income had been around 5.1 percent higher than in the previous year. For the year-end 2019, a sustainability reserve of around 40.7 billion euros is estimated. The Federal Government assumes that the contribution rate to the statutory pension insurance can remain stable at 18.6 percent until 2024.