Corona is to blame: The pensions will not rise in the next few years

Germany's pensioners could 1. July lush increases, look at your retirement pension. In the West there is a Plus from 3.45 per cent in the new länder of the awa

Corona is to blame: The pensions will not rise in the next few years

Germany's pensioners could 1. July lush increases, look at your retirement pension. In the West there is a Plus from 3.45 per cent in the new länder of the award reached even to 4.20 percent. It irritated many observers, that pensions will rise, while at the same time, the Corona-crisis is forcing the economy to its knees.

Also interesting: increase in pension benefits - retirees and more than 50 Euro to get from July in addition,

But the adaptation is required by law. The increase is based on higher income ("average charges") in the year 2019. Retirement benefit in 2020 from the booming economy in the previous year.

Corona-the crisis pushes> the income

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This Situation is referred to the core of the problem for the future pension development. Not allowed to fall in accordance with the statutory provisions of the pensions. But they will not rise as a result of the crisis on the labour market.

financial expert Fehr sees a serious impact on pension scheme

This context Hans Fehr declared by the chair of financial science at the University of Würzburg in a conversation with the würzburg "main post". The expert pointed out that the Federal Agency speak for the work of the biggest recession since the second world war. Fehr, literally, By the crisis on the labour market ", there has been a decrease in the wage sum. It represents the financial base of the statutory pension insurance.“ The losses would have in the coming "year of consequences for the pension".

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Due to the statutory pension guarantee would not decrease the pensions, or "one or two of the zero round for retirees, however, are quite conceivable," warns the expert retirees and policies now. Thus the Phase is completed part of lush annual surcharges. Most recently retirees have had to cope with in 2010, is a zero round.

pension adjustments for West and East Germany in the years from 2009 to 2020, Statista Recently, in the year 2020 with a zero number at the time of the pension increase.

wages set in the medium term to

professional Fehr expected to be in the "main post" that the wages increase to Overcome the current crisis. This will result with a delay of one to two years, to increasing pensions.

most of the Corona is affected from Fehrs point of view, crisis workers and future pensioners. Because the current retiree benefit of the statutory requirements. To determine that the "catch-up factor" is suspended until the year 2025. This catch-up effect of factor is actually that prior to a possible increase in pension is first taken into account whether in the past, in fact, necessary before but omitted pension cuts, "" rescheduled to be.

Therefore, current pensioners in the economy would need to worry about crises no loss, but can still benefit from a possible pension increases in the case of an economic recovery. Unlike Employees in short-time work, which must now forego income.

retirement of the baby Boomer generation continues to state pension under massive pressure

Despite the foreseeable effects of the Corona-crisis to current pensioners Fehr warns in the "main post" in front of the future challenges of the German pension system. The retirement of the baby boomers will lead to a decrease of contributors and an increase of retired people. Both the financial strength of the pension system burden. A possible consequence of The policy could be lowering "in the future the level of pensions currently guaranteed a minimum of 48 percent, the contribution rate of the contribution payer, currently at 18.6 percent increase, and so the contribution to revenue constant".

This means that The pensions would decrease, and at the same time, the contributions of active workers.

content check: The gross-to-net calculator 2020 remains So much net them by the gross

retirement age could continue to

be raised As a long-term consequence of the demographic change can imagine Fehr, that the retirement age of 67 years. An Alternative would be that the tax subsidy for the pension Fund continue to rise. He currently stands at almost 100 billion Euro per year.

With his forecasts, financial expert, Fehr is not alone. Apple, Amazon, Facebook - just a Tech-giant is, Dirk Müller, a purchase FOCUS Online Apple, Amazon, Facebook - just a Tech-giant is, Dirk Müller, a purchase

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Updated Date: 12 July 2020, 10:27

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