Social Welfare Organization Urges Swift Action to Secure Pension Levels
The Social Welfare Organization of Germany, SoVD, is pressing for swift measures to stabilize the pension level, ahead of the expected Bundesrat approval of this year’s pension increase on Friday.
SoVD’s chair, Michaela Engelmeier, emphasized the importance of timely adjustments to the pension level, stating that good pension adjustments are also necessary in the coming years. “It is crucial that the stabilization of the pension level comes soon. If it does not, the increase in pensions will be less significant” Engelmeier noted, warning that the consequences would be catastrophic for people with small pensions.
The Bundesrat is set to discuss the pension increase in Berlin on Friday, a decision that was made by the previous government. The plan is to increase the pension by 3.74 percent, effective from July 1. The new base salary point will be 40.79 euros, up from the current 39.32 euros. A standard pension, based on average income and 45 years of contributions, would result in a monthly increase of 66.15 euros.
Engelmeier views the annual pension adjustment as a reliable instrument and a positive factor of the statutory pension insurance, allowing the 21 million pensioners to plan ahead: “if wages rise, so do pensions” she added.