Pension system in focus: Why women are massively disadvantaged in old age!

Pension system in focus: Why women are massively disadvantaged in old age!

The current analysis by the General Association of the German Insurance Industry (GDV) and the economic research institute Prognos shows in an alarming manner the existing inequalities in retirement provision between men and women in Germany. The data for 2023 shows that on average men receive 52% more statutory pensions than women. In West Germany in particular, the gap is significantly diversified at 66%.

The average pension payment amounts illustrate this discrepancy. Women receive 936 euros per month, while men have almost 500 euros more in their pockets at 1,427 euros per month. However, this inequality has eased somewhat over the last decade: women's pensions rose by 62%, while men's pensions increased by only 30%. However, the gender pension gap, also known as the gender pension gap, remains a significant problem.

Causes of the Gender Pension Gap

The reasons for this significant difference are diverse. Women are more likely to work part-time, take more frequent and longer breaks from work and are often employed in lower-paying jobs. Poor pay also increases financial disadvantages in old age.

The difference between East and West Germany is particularly striking. In East Germany the gender pension gap is only 16%. This positive difference is due to the higher participation of women in the labor market in the former GDR, which has correspondingly improved pension entitlements.

Regional differences in pension levels

The analysis also highlights regional differences. The highest pensions for women are recorded in Potsdam at 1,314 euros per month, which is 40% above the national average. In contrast, women in the Cham district in Bavaria receive the lowest pensions at just 704 euros per month.

The GDV warns urgently about the risk of poverty in old age, as the average pension payment amount in Germany is only 1,149 euros. This sum is often not enough to lead a comfortable life in old age. In addition, demographic change is putting pressure on the pension system and fueling the need for stable retirement provision.

In summary, the gender pension gap represents a significant challenge not only for women, but also for society as a whole. The term refers to the difference in retirement provision between the sexes and includes all types of old-age and survivor's pensions as well as pensions from individual private provision. The indicator takes individuals into account and not households, which further illustrates the urgency of the problem. However, conclusions about the pension situation of older women cannot be derived from the gender pension gap alone. The need for a comprehensive change in pension policy is therefore obvious.

For more information on these important topics, you can read reports from THE INVESTMENT and Destatis see.