About 300,000 people who retire between this year and 2025 will lose money. Your old posts are undervalued.
The “Krone” has already reported on it. The Ministry of Social Affairs is now investigating how the problem can be “muted”. The point is that everyone who retires by 2025 sometimes has a considerable backlog in calculating his pension, which according to the Labor Chamber can amount to 1700 euros gross per year. The longer you live, the greater the loss.
The “guilt” for this is again high inflation. Because the premiums you have paid into the pension account are revalued annually in line with wage developments. That happens afterwards, because only then will you know the height. By law, the delay is two to three years.
Fall solution?
In 2023, gross wages increased by an average of 8.2 percent. But those who retire this year, 2024 and 2025 (approx. 100,000 per year), will only receive the revaluation with the old value when inflation was much lower. Exactly how much you lose depends on many factors and is tricky to calculate. If inflation remains constant over the years, as it used to be, the problem does not exist. The Minister of Social Affairs hopes to find a solution to this ‘pension trap’ in the autumn. A group of experts is currently analyzing the possibilities.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
