Financial hardship among German pensioners: This is how the pension increase affects poverty

Financial hardship among German pensioners: This is how the pension increase affects poverty

According to a report by www.fr.de, more and more pensioners in Germany are feeling the pressure of rising costs, as pension increases are barely keeping pace with inflation. The Federal Statistical Office has recorded a growing risk of poverty among those over 65 years of age.

The study by the German Economic Institute (IW) showed that the average monthly income of single pensioners is 1,945 euros. A single pensioner who has this monthly household income is already part of the financially better-off half of this population group. However, in order to be in the top ten percent, you must have a monthly household income of at least 3,500 euros. In comparison, the average pension for those with long-term insurance was 1,370 euros at the end of 2021.

The median income, which divides all income earners into two equal groups, is 1,800 euros for pensioners. When comparing the various population groups, people with a university degree have the highest median income of 2,808 euros.

The financial situation of German pensioners reflects the growing risk of poverty, as the risk of falling into poverty is 16 percent for pensioners with a monthly household income of 1,800 euros. In comparison, the risk of poverty for full-time workers is only six percent and for single parents it is 37 percent.

These figures show that a growing number of pensioners in Germany are facing financial difficulties and that pension increases are not enough to keep up with rising costs. In the long term, this development could lead to greater strain on the social system and increased demand for alternatives to retirement provision. Politicians and the financial sector may have to rethink this and develop new solutions to secure the financial future of pensioners.