Subpar Retirement Income: Roughly a Quarters of Retirees in Germany Struggle With Less Than 1500 Euros monthly
Retirement Income Data Reveals: Over a Fourth of Retirees Earn Below €1,500 Monthly - Over a fourth of retirees receive income below EUR 1500 per month.
Here's the rundown: In 2024, a staggering 7.4% of German retirees scrambled by on less than 1100 euros net income each month, according to the stats. Compare that to 2022, where the figure hovered around 10%. Now, take a look at the silver linings: 24.4% of retirees managed between 1500 and 2000 euros, and an impressive 51.8% resided comfortably above that mark, with more than 2000 euros at their disposal.
But wait, what's net equivalent income, you ask? It's the nifty formula that compares the net incomes of households of varied sizes, highlighting their economic purchasing power. However, it's important to note that the impact of inflation hasn't been accounted for in comparison to 2022.
Now, let's hear it from the horse's mouth, shall we? BSW chairwoman Wagenknecht had a bone to pick with the high number of retirees scraping by on limited means. "If almost every fourth person is left hanging below or kissing the poverty line in old age, that's a damning reflection on our country," she declared to "BamS".
But hang on, what about the other side of the coin? Well, pension expert Bernd Raffelhuschen, as quoted in "BamS", doesn't exactly share the same view. "In reality, the elderly have the highest wealth compared to every other age group in Germany," he notably pointed out. "Low-income singles and children have a significantly higher risk of poverty and a much lower standard of living than the elderly," he added.
- Germany
- Economics
- Retirement
- Pension System
- BamS
And as far as the ins and outs of the German pension system are concerned, it's primarily made up of defined-contribution plans that are chiefly employer-funded, with a growing trend towards co-financing[2]. If you're curious about more details regarding the distribution of net equivalent income among retirees, it's recommended to reach out to the Federal Statistical Office of Germany directly or explore specific reports from their archives. These reports often analyze income distribution based on different factors such as age, gender, and income categories, offering valuable insights into the economic conditions of retirees in Germany.
Lastly, if you're on the hunt for broader economic data, you might take a peek at statistics on income and savings rates across Europe. For instance, the average savings rate in the Euro area is predicted to dip below eight percent of disposable income in 2025[5]. When it comes to net average monthly salaries in Germany, you can refer to resources like Eurostat or the Federal Statistical Office for comprehensive income data.
[1] https://www.destatis.de/[2] https://en.wikipedia.org/wiki/Pension_system#Germany[3] https://de.wikipedia.org/wiki/Altersrentenversicherung[4] https://www.bamsw.de/[5] https://www.economist.com/graphic-detail/2022/03/24/the-average-european-is-least-likely-to-save-during-a-recession
- In the German pension system, a significant number of retirees are struggling with almost one quarter receiving less than €1500 monthly, a concern raised by the Federation of the Sahara Wagenknecht.
- To further understand the economic conditions of retirees, it's advisable to refer to the Federal Statistical Office of Germany for detailed reports on income distribution among retirees, considering various factors such as age, gender, and income categories.
