According to TV2, the chief economist at Danica Pensions says that the high wage increases in 2024 will now benefit the country's government pensioners.
The country's government retirees are expected to receive their biggest pension increase in 16 years as we enter the new year.
This is evident from the published regulations for public benefits according to the Danica Pension Fund.
Mads Moberg-Romert, chief economist at Danica Pensions, calculated what these regulations mean in terms of money for individual public pensioners.
Overall, maximum benefits are expected to grow by 4.8%.
This means that a pensioner who lives alone and does not receive additional income, and who currently receives 186,324 kroner before tax per year, will receive 195,276 kroner per year.
Significant increase
For state pensioners who have a spouse or life partner, the rate increases from 137,520 Danish kroner to 144,132 Danish kroner per year before tax.
Mads Moberg-Romert told TV2 that this is a significant increase, but it also comes shortly after a period of large price hikes in some food items, among other goods: “Many pensioners will certainly notice that more money is flowing into their accounts,“ says Mads Moberg-Romert, ”but we have also seen a period of large price increases in many goods, and therefore there may still be a number of pensioners who will find it difficult to meet their needs.“.
According to Mads Moberg Roemert, the 4.8% increase in the maximum interest rate is the largest percentage increase since the beginning of the year between 2009 and 2010.
The increases are a result of the 2024 salary increase agreement.
The increase in the state pension is calculated based on the general increases in wages in society two years prior, and therefore the next increase is a result of the wage increases in 2024.
Wage growth was very high two years ago. Therefore, we will also see a significant increase at the beginning of the year, says Mads Moberg-Romert.
Pension calculation
The state pension consists mainly of a basic amount and a supplementary pension. The basic amount is a fixed amount that is not affected by your income or your partner's income.
The amount of the pension bonus depends on whether you are single, married, or a cohabiting partner, and this amount decreases if you or your spouse has additional income that exceeds a certain limit, according to TV2.
