Statutory pension: Fact check on the actual pension amount and the increasing pressure on pension provision - a financial expert explains it!

Statutory pension: Fact check on the actual pension amount and the increasing pressure on pension provision - a financial expert explains it!

According to a report by amp2.wiwo.de, there are major discussions about the statutory pension and its amount. Green party co-leader Ricarda Lang recently caused a stir when she incorrectly estimated the amount of the average pension. In fact, according to 2022 data, the average gross pension is only 1,550 euros. In addition, only 16 percent of male recipients receive a pension of over 1,800 euros and only 2.5 percent of women receive such a high pension. This shows how rare high statutory pensions actually are.

Furthermore, particularly baby boomers will be retiring in the coming years, while the younger generation will not be available to the same extent as employed people and pension contributors. This puts the financing of the statutory pension under pressure. The pension level is expected to fall from 57 percent in 1957 to around 41 percent by 2034. According to the 2023 pension insurance report, the statutory pension only contributes 60 percent of retirement income. This makes it clear that provision in old age through the statutory pension alone will not be sufficient.

These facts show that the statutory pension is experiencing a gradual decline and will probably not be sufficient to secure living standards in old age in the future. Private provision and additional old-age security benefits are therefore becoming increasingly important in order to be financially secure in old age.