Pensions and pensions
Pensions lag inflation
A pensioner pours the contents of her wallet onto the kitchen table. photo
© picture alliance / Felix Kästle/dpa
Pensions and pensions lag behind inflation. Nevertheless, there are clear differences between pensioners and pensioners. The left criticizes this as unfair.
The increase in pensions and pensions in Germany has been significantly behind the rate since 2021 Inflation lagged behind. In previous years, the increases were usually higher when inflation rates were lower. This emerges from the response of the Federal Ministry of Social Affairs to a question from the Left in the Bundestag, which is available to the German Press Agency.
The left-wing pension expert Matthias W. Birkwald, who made the request, accused the federal government of “continuing to show no insight” on the subject of inflation compensation for pensioners.
The government’s overview points to a zero round of pensions in the West in 2021. At that time there was an increase of 0.72 percent in the east, and 1.2 percent in federal pension payments. The inflation rate, however, was 3.1 percent. In 2022, pensions rose by 5.35 percent in the west and by 6.12 percent in the east – the annual average inflation rate was 6.9 percent. This July, pensions rose by 4.39 percent in the west and 5.86 percent in the east. According to the leading economic research institutes, the inflation rate is likely to be 6.1 percent.
Criticism of the left
If you compare pension increases over the past eleven years with inflation rates, according to the federal government, there will be a loss of purchasing power in the pension payments of federal civil servants of 4.3 percentage points. In contrast, there has been a purchasing power gain of 5.2 percentage points for western pensions since 2013, and even 22.2 percentage points for eastern pensions. The background here is the east-west equalization of pensions. During the period, pensions in the West rose by 33.9 percent, those in the East by 50.9 percent and pensions in the federal government by 24.4 percent.
Because of higher inflation since 2001, a possible compensation for pensioners came into focus. Birkwald said: “Instead of both now receiving inflation compensation, it is only available to pensioners. This is incomprehensible to people in Germany.” In fact, a federal salary law stipulates that pensioners receive a tax- and duty-free special payment of 3,000 euros. As with the April conclusion for the federal and local public services, this is divided into an initial 1,240 euros and further monthly amounts.
Federal government reaction
In its response, the Federal Government emphasizes that all citizens have been reached by the government’s relief packages in view of the energy price crisis as a result of the Russian war in Ukraine. She also refers to the energy price allowance of 300 euros for pensioners. Birkwald criticized this as inadequate: “Inflation must finally and immediately be compensated for pensioners too.”
Overall, pension insurance and civil servants’ pensions are two “different, historically grown systems,” according to the government. Unlike statutory pensions, company provisions are already included in pensions. Birkwald, on the other hand, complained about “massive differences”.
On average, pensions are much higher than pensions. “Even if you consider that the pensions already contain a company pension component and that the civil servants have an average higher level of education, this is not acceptable,” said Birkwald. The left-wing politician called for an extraordinary pension increase of 10 percent at the beginning of 2024 and the conversion of the pension insurance into an employment insurance, into which civil servants, self-employed people, freelancers and members of parliament also pay.