In total, almost six million people with pension income are subject to tax in Germany.
According to the Funke newspapers, the Ministry of Finance also assumes that the increase in pensions will increase the state’s tax revenue by 660 million euros. Due to the adjustment of the tax rate 2023 as part of the relief packages, pensioners would in turn be better off by almost two billion euros.
The statutory pensions of around 21 million retirees will rise sharply on July 1: the plus is 4.39 percent in the west and 5.86 percent in the east. However, this will probably not be enough to compensate for the rapid increase in the cost of living. Economists expect an inflation rate of around six percent for this year.
