Pension entitlements: Why some age groups receive less money

Pension entitlements: Why some age groups receive less money

The amount of pension a person receives in retirement varies individually and is based on various factors. Identifying the age groups with the lowest pensions is therefore difficult because pension entitlements depend, among other things, on contribution years, average income during working life and the year of birth. Some birth cohorts in Germany receive less money as they get older, which is due to various influencing factors.

The individual pension entitlement is created taking into account various aspects such as the number of years of contributions, average income during working life, type of pension access and the number of children. A higher average income and more years of contributions enable more earnings points, which in turn determine the pension amount. However, there are also deductions from the pension, which can ultimately lead to lower payouts.

Those born before 1947 often have lower average incomes and, as a result, receive lower pensions. In contrast, those born in the 1950s and 1960s benefit from long-term economic growth, which leads to higher pension entitlements. Wartime led to fewer years of contributions and thus to reduced pension entitlements for those born during this period.

Social and cultural circumstances also influence the amount of pension. Those born after 1964 often have to contend with higher unemployment, longer periods of training and part-time work, which can lead to lower pension entitlements. In addition, women receive a lower pension on average than men, due, among other things, to frequent part-time work and taking on parenting work in the family.