For retirees, the statutory pension will increase on July 1st. But the increase does not reach everyone at the same time. Because it depends on when you retire. Some people can already look forward to more money at the end of June. Others will have to wait until the end of the following month.
The approximately 21 million pensioners in Germany will get more money on July 1st. The reason is the annual pension adjustment. However, the pension plus is not transferred to all pensioners at the same time. This is pointed out by the German Pension Insurance Association in Berlin.
When the increased pension is paid depends on when the pension begins: Those who received their pension by March 2004 will already receive the adjusted payments at the end of June. If the pension began in April 2004 or later, the plus will not be in the account until the end of July. Payment is automatic.
In the old federal states, pensions will increase by 5.35 percent as of July 1, 2022, and by 6.12 percent in the new federal states. This results in an increase in the central pension value in the calculation in the west from the current 34.19 to 36.02 euros and in the east from the current 33.47 to 35.52 euros. The pension value is decisive for the calculation of the pension. A pension that is only based on West contributions increases from the previous 1,000 euros to 1,053.50 euros. One, which is only based on East contributions, increases from the previous 1000 euros to 1061.20 euros. A major reason for the strong increase despite the catch-up factor is the positive wage development due to a good development on the labor market in Germany.
The pension adjustment notification states how much your own pension will increase. It also informs pensioners when the new amount will be paid out. The mailing of the pension adjustment notifications begins on June 10 and ends on July 27, 2022. The pensions are paid out by the pension service of Deutsche Post AG.
As a result of the increase, retirees can look forward to a whopping increase in their salaries, but tens of thousands of them are being asked to pay by the tax office. Because they then have to pay taxes on their pension or are at least obliged to file a tax return. This is always due when the taxable income exceeds the annual basic allowance. After the increase, around 103,000 pensioners will be subject to tax for the first time, according to a response from the Federal Ministry of Finance in April to a small question from the left in the Bundestag.
This is how the pension is calculated
(This article was first published on Thursday, June 09, 2022.)