Men's pensions overtake women: That's how big the pension gap is!

Men's pensions overtake women: That's how big the pension gap is!

In Germany there is a striking gap in pensions between men and women, known as the “Gender Pension Gap”. According to a report by fr.de, men receive on average 52 percent more statutory pensions than women. This inequality runs through the different types of pension provision, be it statutory, company or private.

Another fact is that, on average, women in retirement earn around 43 percent less income than their male colleagues. In 2023, the average pension amount for West German women was less than 1,000 euros per month, while in the east no federal state fell below the 1,100 euro mark. The difference is particularly striking in the East and West, where East German women receive 1,218 euros, over 350 euros more than their West German counterparts.

Regional differences and employment histories

The employment histories of many West German women are often characterized by long breaks and part-time work. These factors contribute significantly to the pension gap, which is around 62 percent in western German states. In contrast, there is a higher labor force participation rate for women in East Germany, which can be attributed to the social conditions in the GDR. At 22 percent, the gender pension gap here is well below the West German figure of 48 percent.

• Westdeutsche Männer erhalten durchschnittlich 1430 Euro Rente, während im Osten mit 1416 Euro nur geringfügig weniger gezahlt wird.
• Die höchste durchschnittliche Rente für Frauen in Deutschland finden wir in Potsdam mit stolzen 1314 Euro monatlich.
• Dagegen ist die niedrigste Rente für Frauen im Eifelkreis Bitburg-Prüm mit nur 668 Euro zu verzeichnen.

Another aspect that explains the gender pension gap is the different participation in the company pension scheme (BAV). The participation of men in West Germany is 21 percent higher than that of women. Things are looking somewhat better in private pension provision (PAV), as women are more likely to take out Riester contracts due to state support. However, the GPG remains highest in the PAV due to lower contributions from women.

Social components and their effects

The social compensation elements in the statutory pension insurance (GRV) also have an impact on pension entitlements. Advantageous regulations, such as those for raising children, help to narrow the gap somewhat, especially in East Germany, where the gender pension gap for younger age groups is actually negative, which means that women there have higher entitlements than men.

Given these differences, it remains important that an integrated database is created in order to make evidence-based decisions in the pension system. The individual composition of entitlements has a significant influence on the gender pension gap in the German pension system.

The gender pension gap is more than just a statistical quantity; it is an indicator of deeper social inequalities that significantly influence the reality of life for many women, even in old age. We would like to continue to address these challenges in future reports and hope that the dialogue on these topics will intensify.

For further information please refer to the detailed analyzes by fr.de, rentenupdate.drv-bund.de and destatis.de referred.