Pension insurance is financially in better shape than expected


retirees

The prospects for pensioners are good for the time being.


(Photo: dpa)

Wuerzburg Despite the expected recession in Germany, the financial forecasts for the 21 million pensioners in the coming years are initially positive. The German Pension Insurance Association confirmed on Wednesday in Würzburg that pensions are likely to rise by around 3.5 percent in western Germany and by more than 4 percent in eastern Germany in the coming year. “We simply have record employment,” said President Gundula Roßbach. Roßbach emphasized that the increase in income from compulsory contributions from employment was particularly significant at plus 5.4 percent this year.

The chairwoman of the federal board of pension insurance, Anja Piel, said: “Of course we are pleased that this has developed comparatively more favorably than predicted last year.” highlighted Piel. The compulsory contributions from gainful employment would increase by an estimated 16.1 percent by 2026.

In addition to the labor market and wage situation in Germany, which is favorable for the pension fund, life expectancy on average is not increasing as much as previously thought, as co-chairman Alexander Gunkel announced. The background is the increased mortality due to the corona pandemic.

This tends to have a dampening effect on pension fund expenditure. positive immigration to Germany is also having an effect off, said Gunkel. As a result, more people paid into the pension fund.

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However, the representatives of the pension insurance emphasized the uncertainties of the forecasts because of the economic crisis. “The uncertainties in this economic development are certainly as great as they were a few years ago,” said Gunkel. In addition, the pension insurance confirmed that the financial situation of the pension fund is likely to deteriorate in the medium term after the positive developments, since the baby boomer generation is increasingly retiring.

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