Financial expert warns: Many low-income earners are at risk of poverty in old age

Financial expert warns: Many low-income earners are at risk of poverty in old age

According to a report by www.kreiszeitung.de, the Berlin hairdresser presents an alarming perspective on the financial situation in retirement. With a current gross salary of 1,500 euros for full-time employment and rapidly rising living costs, she sees her future in retirement as extremely bleak.

The statistics from the Federal Statistical Office (Destatis) from 2022 confirm your concerns, as 18.3 percent of people aged 65 and over are at risk of poverty. Women in particular are often worse off in old age, as the at-risk-of-poverty rate for women aged 65 and over is 20.3 percent, compared to 15.9 percent for men.

The hairdresser fears that she will only have a maximum of 800 euros when she retires, even though her rent is already 650 euros. This prospect of a minimal pension makes it almost impossible for her to cover all other expenses such as insurance, doctor's visits, food and clothing. Their call for action from politicians reflects the plight of many low earners and the uncertainty surrounding pension policy.

Given these alarming facts, a growing number of people in similar careers may decide to take additional savings measures to ensure financial security in retirement. This could lead to increased demand for financial products and pension services to ensure care in old age. In addition, political demands and debates on pension policy could also lead to further changes and adjustments in the financial sector.