The Courier

Forecast: pension level to fall to 46 percent in 2034 | Free press

Berlin (dpa) – Pension levels in Germany are expected to fall from 48.2 percent today to 46 percent in 2034, according to the 2020 pension insurance report passed in the federal cabinet on Wednesday.

This level of security expresses the relationship between statutory pensions and wages. It is expected to rise to 51 percent by 2023 before declining further.

This takes into account that pensions will probably increase by about 32 percent in total by 2034. As is well known, pension recipients in the West will be at zero next year, while salaries in the East are likely to rise by about 0.7 percent.

All incomes added together, the net household income of the elderly has increased significantly in recent years. For married couples and singles aged 65 and older, it has increased by 14 percent since 2015 to an average of 2,207 euros last year. This includes interest income, rental income, income from work and private pensions. The pension report, which has also been approved, provides information about this data.

The federal government states that the elderly have had a “significant real rise in income” since 2015 – as prices for the cost of living have increased only 5.3 percent since then. The average monthly net income of married couples aged 65 and over is EUR 2,989 in the old Länder and EUR 2,557 in East Germany. For single men this is 1,816 nationwide, for women only 1,607 euros.

For the state pension, the crisis caused by the corona pandemic has also significantly reduced the reserve. A sustainability reserve of 36.3 billion euros is expected by the end of 2020. This has reduced the reserve by 4.2 billion euros this year. The premium rate is expected to remain constant at 18.6 percent over the next two years, before rising to 19.9 percent in the middle of the decade.

Federal Social Minister Hubertus Heil (SPD) emphasized that despite the corona pandemic, pension finances are well positioned. This is also because a premium for the pension is paid on the working time allowance.

The Deutsche Rentenversicherung pointed out that the average gross pension of people over 65 increased by 9.6 percent for men – and by 17.5 percent for women – between 2015 and 2019.

Four percent of married couples and eight percent of single people under the age of 65 and older people receive benefits from the government: basic security, housing benefit, child benefit or social assistance. The amount of these benefits, which are often paid in addition, averages EUR 415 for married couples and EUR 347 for singles.

Exit mobile version