Pension increase in July 2020: what can we expect? | Economy

1. July 2020 will increase the pension. When comes the new, higher pension for the first time, to the account of the pensioner? All the relevant information. A

Pension increase in July 2020: what can we expect? | Economy

1. July 2020 will increase the pension. When comes the new, higher pension for the first time, to the account of the pensioner? All the relevant information.

Around 21 million retiree get 1. July 2020 a increase in pension But when the increased pension* on the account? The answer is for each retiree to be different In which document, how much pension you now and when you for the first time

In Germany is paid, there are currently around 21 million retiree , their pension to 1. July 2020 is increased. But when the increase in pension on the account of the pensioner to comes? This is a question of one or the other to be Concerned, certainly turns. The answer is quite simple, because the pension adjustment is performed at different points in time.

pension increase in July, 2020: when will the increased pension on the account?

when the new, increased pension comes to the account , look in the pension communication . Because it depends on the moment of Retirement, when the pension is raised:

Who receives, has received, before or in March 2004, for the first time pension, the increased pension for the first time at the end of June 2020. Who has taken after March 2004, for the first time pension, the pension adjustment for the first time, with the pension at the end of July 2020 referred.

retirees need to Do nothing, the payment of the increased pension is calculated automatically.

basis of pension increases, wage developments in Germany

pension adjustment by July 2020 is already known for some time. In April 2020 it was decided by the Federal Cabinet, the Federal Council has subsequently consented. The basis for the increase in pension the wage development.

July 2020, the pension is increased by up to 4.20 percent

In the old "länder" is the pensions are increased for the July 2020 to a 3.45 per cent, in the new länder retiree 4,20% more money . This means that the value of a pension* increased from 33,05 Euro (old lander) to a height of 34.19 euros. In the new länder, it rises from 31,89 Euro on the 33.23 euros. The current pension value in the new länder is thus, according to the German statutory pension insurance scheme 97.2 per cent of the West value.

+ To 1. July 2020 will increase the pension in Germany in order of 3.45 per cent (old länder) or to 4.20 per cent (new länder).©picture alliance / dpa / Jens Kalaene

From the beginning of June will be shipped pension adjustment notices , in which the pensioners can read, by how many euros the pension increases with the adjustment. It is also to be recorded in writing, when will be paid the increased pension amount .

Higher pension ensures that some of the pensioners suddenly tax obligation

A higher pension for many pensioners is certainly a reason to be happy - but it must not be forgotten, such as the Deutsche Rentenversicherung stresses on your site: "Future pension adjustments will increase the individual's taxable pension income and tax in the full amount required."

It may happen, therefore, that by the pension increase in July in 2020, some pensioners in the future, a tax return* have not had to do so far. If a retiree is suddenly subject to tax* depends, for example, when he first received pension* and if he exceeds his taxable income by the exemption amount. The Federal Ministry of Finance beginning in 2020, the state will take the pension increase of around 420 million euros more in income tax*.

pension in the Corona-crisis: "The payment of pension is assured"

How to do it in the Corona-crisis* with the pension further, is not yet clear. One thing is certain, however , according to Gundula Rossbach, the President of the German pension insurance , The pensions are reduced in the summer of 2021 in any case, this is defined by the law.

How strong is the pensions would then rise, depends on the development of gross wages in the year 2020. "At the Moment we can not say seriously before, such as the development of the technology," says Rossbach. Basically, it stresses: The pension insurance go "financially well-equipped," in the crisis. "The payment of pensions is assured."

Tanja Banner, with Material of dpa.

* is part of the nationwide Ippen-Digital-editor.

Date Of Update: 11 June 2020, 01:33