Development of Financial Support for People with Disabilities: Increasing retirement pensions for those who suffer from long-term disabilities

Disability pensions have witnessed a significant growth since 2013, with an increase of 60%, reaching an average of 1065 euros per month, compared to the previous average of 678 euros.

This increase is partly due to annual increases in retirement pensions and partly due to extending the contribution period. In fact, the contribution period now extends until the regular retirement age of 65 years and 8 months.

Development of financial support for people with disabilities - increasing retirement pensions for those suffering from long-term disabilities

Settling the Affairs of the Disabled:

As a result of this improvement, the allowances for the disabled have become equal to those earned by those who worked until reaching the regular retirement age, while maintaining their previous income average.

The limitation of pension due to low income in the four years before the onset of disability is no longer applied. In Germany, the number of retirees receiving disability benefits is approximately 1.8 million, accounting for about one-fifth of all new retirees.

Requirements for obtaining disability retirement pension:

Only those who have not reached the normal retirement age are eligible to receive a disability retirement benefit, and additionally, disabled individuals must have contributed to the federal retirement insurance system for a minimum of five years before the onset of the disability.

At least three years out of the past five years must be documented, during which disabled individuals have paid mandatory insurance or contributions for the process of insurance or activity.

Medical Requirements:

Generally, a full or partial disability pension is granted if it is impossible or nearly impossible to regain the ability to work through medical treatment or rehabilitation procedures, whereby the pension provider assesses the situation.

Ability to work and rehabilitation:

If it is not possible to regain work capacity through rehabilitation, the individual’s ability to work is assessed, and based on this evaluation, it is determined whether there is a total or partial disability.

Future Enhancements:

Despite the positive developments in supporting people with disabilities over the past decade, these improvements have not yet been extended to long-term disabled individuals who have only spent a short period in employment, resulting in significantly lower benefits for them.

But this category will receive a monthly bonus in the future.

Eligibility criteria for receiving the bonus:

Those who started receiving their retirement pensions between January 1, 2001, and December 31, 2018, are entitled to receive this bonus. Additionally, the disabled must have continuously received the disability retirement pension until June 30, 2024, in order to be eligible.

This bonus will also apply to those who directly transition from regular retirement pension to disability retirement pension. It includes approximately three million retirees.

The Bonus Amount:

Individuals who commenced their retirement pensions between January 1, 2002, and June 30, 2014, will receive a bonus of 7.5% on June 20, 2024. This is equivalent to approximately 70 euros on average.

Those who started their pensions between July 1, 2014, and December 31, 2018, will receive a bonus of 4.5%, equivalent to approximately 40 euros on average.

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