Pension crisis: One in four Germans receives less than 1,300 euros!

Pension crisis: One in four Germans receives less than 1,300 euros!

In Germany, the pension situation is a topic that always causes discussions. Loud star More than one in four Germans who have paid into pension insurance for at least 45 years receive a pension of less than 1,300 euros per month. This is a warning sign for many retirees who have to come to terms with a tight budget.

On average, over 5.5 million pensioners with the corresponding contribution years receive a pension of 1,668 euros. There are clear differences between the regions: While pensioners in West Germany receive an average of 1,729 euros, pensioners in East Germany only receive 1,527 euros. The differences between the federal states are particularly striking: in Hamburg the highest pension is 1,787 euros, while Thuringia has the lowest pension at just 1,491 euros.

Gender perspective and poverty in old age

The gender pension gap is also a relevant topic that is often neglected in the public debate. Men receive an average of 1,778 euros, while women have to make do with significantly less at 1,449 euros. This inequality means that poverty in old age affects women more severely. Statista reports that in 2022 around 19.4 percent of senior women will be considered at risk of poverty, while this rate for men is only 15.1 percent.

The reasons for this inequality are diverse. Women often work part-time, take on more unpaid care work and therefore have lower pension entitlements. In addition, the numbers from bpb that around 17 percent of pensioner households and 27 percent of households with pensioners have a net income of less than 1,300 euros. This is particularly alarming when you consider that around 660,000 people in Germany were dependent on basic security in 2022 - a record number.

Pensioner households vs. pensioner households

Another interesting aspect is the difference between pensioner households and pensioner households. Pensioners have it much better: around 60 percent of them are in the upper income range from 3,600 euros, while only 11 percent of pensioner households achieve this status. The financial divide is also evident in income distribution data, which shows a worrying accumulation of income poverty.

In this context, Dietmar Bartsch from the Left speaks of an “indication of poverty for politics” and calls for a fundamental turnaround in pension policy. He criticizes the stabilization of the pension level at 48 percent and points out that lower pensions are often only part of the problem. The government, however, emphasizes that the figures do not reflect the entire financial situation of those affected, as other sources of income can also play a role.

Those who receive lower pensions due to short contribution periods are particularly affected. The combination of low statutory pensions and a lack of company pensions creates a vicious circle of poverty in old age, which particularly hits solo self-employed people and people in the low-wage sector hard.

The debate about pension reform is more than just a political discussion. It affects millions of people in Germany who have to fear for their financial security in old age. Given the constantly increasing number of pensioners and the growing differences in pensions, it remains to be seen how politicians will react to counteract this.