Fewer seniors than expected are receiving basic pensions - a study by the DIW shows a smaller group of recipients

Fewer seniors than expected are receiving basic pensions - a study by the DIW shows a smaller group of recipients

According to a report by www.n-tv.de, a study by the German Institute for Economic Research (DIW) has shown that fewer seniors than expected are receiving the basic pension. It was originally planned that 1.4 million people would benefit from the basic pension, but according to the study, only 1.1 million seniors received the supplement. These developments raise questions about what impact this discrepancy could have on the market and the financial industry.

The basic pension was introduced by the SPD at the beginning of 2021 against the opposition of the Union to help people who have paid in for many years but earned little. It was a social promise and a “social-political milestone,” according to the announcement at the time. However, the new DIW study shows that the basic pension only reaches 4.3 percent of pensioners. This suggests that the basic pension may not be sufficient to adequately combat poverty in old age.

The DIW analysis also shows that overall fewer people than expected benefit from the basic pension, and those who receive this benefit are primarily women and East Germans. The DIW report suggests that women who have more time to raise children and lower wages benefit more often from the basic pension. On average, beneficiaries receive a monthly pension increase of 86 euros.

The fact that the number of beneficiaries is lower than expected could pose challenges for both pension insurance and the financial sector. What measures and adjustments will now be taken as a result of this development to ensure that the basic pension achieves its intended goals remains to be seen.