German state pension to rise

  • By: Jenny Blinch
  • 21 Mar 2007
  • Be the first to comment
  • Print
  • Send

GERMANY – Germany’s labour minister and vice chancellor, Franz Müntefering, announced that state pensions would be increased by 0.54% from July 1.

Speaking on German TV, Müntefering said it would cost the state approximately €1.2bn to fund the increase for the country’s 20 million pensioners.

Germany’s pension payouts have remained frozen for three years, due to high unemployment and poor economic performance. However, last year saw the first signs of improvement.

Müntefering stressed that finding work for Germany’s numerous unemployed was the priority and would lead to pensions rising further. Some 1.2 million people over the age of 50 are out of work in Germany.

Earlier this month, union members within the German Federation (DGB) felt moved to protest when a law was passed by the lower house raising the retirement age from 65 to 67.

If passed by the upper house, the retirement age will gradually rise from 2012 until it reaches the new agreed level in 2029.

Visitors comments

Get the latest news direct to your inbox.

Pensions library


A guide to Pensions Stability


This guide to Pensions Stability explores the new financial and operational model for defined benefit (DB) pension schemes. Pension schemes are still being run with far greater risk than is necessary and there is an opportunity to create a more stable pensions environment for trustees and sponsors.


Joint institute pensions survey 2014


This inaugural survey among 326 members of the Chartered Institute of Personnel and Development (CIPD) and the Pensions Management Institute (PMI) asked whether auto-enrolment will deliver on its goals; if contribution rates for employees and employers need to rise; and whether pensions tax relief needs further reform.

Job of the week