Old-age poverty in Germany: More and more seniors are dependent on basic security!

Old-age poverty in Germany: More and more seniors are dependent on basic security!

Old-age poverty in Germany is a growing problem, the dimensions of which have changed significantly in recent years. According to a recent report by Insurance Journal More and more older citizens are receiving basic security in old age. In December 2021 there were already 589,000 people who were dependent on this financial support. This corresponds to an increase compared to 2020, when 564,000 seniors claimed basic security.

The proportion of seniors who benefit from basic security is 3.4%. This proportion is lower among German citizens at 2.6%, while for foreigners it is 17.5%. There is also a significant regional difference, with 3.7% of seniors in West Germany and 2.2% in East Germany receiving basic security.

Demographic developments

The demographic situation in Germany has also changed. The number of people aged 65 and over increased from 16.6 million in 2011 to 18.4 million in 2021, an increase of 11%. The share of this age group in the total population grew from 20.7% (2011) to 22.1% (2021). These statistical data make it clear that the pension rate has not only increased in recent years, but will continue to do so, especially with a forecast of around 54% in 2060 if one considers the number of pension recipients aged 65 and over per 100 working people.

Another interesting development is the increase in employment among older people. In 2021, 12.9% of 65- to 75-year-olds were employed, which represents a significant increase compared to 2011 (7.0%). The proportion of employed people is particularly high among women (9.9%) and men (16.2%) in this age group.

Financial situation of pensioners

Despite increasing participation in the workforce, the financial situation of many older people is worrying. In 2021, 4.9 million pensioners lived with a monthly net income of less than 1,000 euros. This corresponds to 27.8% of pensioners, affecting 38.2% of women and 14.7% of men. These figures make it clear that a significant proportion of seniors in Germany are affected by poverty in old age.

The federal government has introduced a one-off energy price flat rate for pensioners as part of its third relief package, which is aimed at helping low earners. These measures are necessary to counteract the challenges of rising living costs and persistent poverty in old age.

Overall, it is clear that the discussion about old-age poverty in Germany is becoming more urgent. Government support systems must be continuously monitored and, if necessary, adjusted to ensure that no one falls into need in old age. Demographic change also requires innovative approaches to ensure the quality of life of all older people in the long term. For more information, see the report from Destatis.