Until 2003, the pension was paid out at the beginning of the month. There is a reason why the pension of most pensioners has always been paid out at the end of the month since 2004.
While there were only 15.29 million pensioners in Germany in 1991, the number has increased over the years to 21.2 million by 2021. Since 2004, all pensions are no longer paid at the beginning of the month, but at the end of the month. Since many bills, such as rent, are due at the beginning of the month, the question arises as to why the payment date was changed.
Change in payout in 2003
In 2003, the Federal Republic had to contend with high national debt and empty social security funds, as MDR reports. This year, the red-green federal government passed the “Agenda 2010” reform package. As part of this reform package, the payment of pensions was postponed from the beginning of the month to the end of the month. Left-wing member of the Bundestag Matthias W. Birkwald explained to the MDR: “They simply wanted to save costs. And that was at the expense of the pensioners. Red-Green assumed that this measure could save 750 million euros a year.” . However, only new pensioners were affected. Anyone who retired before 2003 will receive their pension (still today) at the beginning of the month. The payments at the end of the month actually led to savings, as the MDR explains.
In this way, savings could be made through the later payment
In order to explain the savings effect, one should imagine a large group of people from which people keep leaving or joining and who receive a pension payment at the beginning of each month, according to the MDR. “If you now decide on a key date that all newcomers will only receive their pension at the end of the month, that saves a lot of money in the same month. Although their payment will still be due later, it will remain the case in the future that the pension payment will only be made on The end of the month arrives. The initial savings effect is therefore extended month by month, similar to an open-ended loan.” In addition, the fact that more and more pensioners only receive their pension payments at the end of the month and fewer and fewer at the beginning of the month also has a positive effect on the savings effect.
E. Schmal / Editor finanzen.net