Pension amount in Germany: How much money do seniors have at their disposal on average?

Pension amount in Germany: How much money do seniors have at their disposal on average?

According to a report by www.hna.de, a study by the German Economic Institute (IW) Cologne shows that the average household income of pensioners living alone in Germany is 1,945 euros per month. To be among the richest 10 percent, you need at least a monthly household income of 3,500 euros. In comparison, the average pension for those with long-term insurance was only 1,370 euros at the end of 2021.

The income divides pensioners into two groups: With an income of 1,800 euros per month, pensioners already belong to the poorer half of the population, with a poverty risk rate of 16 percent. People with a university degree have significantly higher incomes compared to a median income of 2,808 euros.

These figures show that the financial situation of pensioners in Germany varies greatly. While some have a comparatively high income, others live in financially difficult circumstances. These differences can have an impact on the market because lower-income retirees are able to purchase fewer consumer goods while higher-income retirees continue to have strong purchasing power. This could also impact the financial industry, as different groups of retirees have different needs when it comes to financial services.

Overall, the study by IW Cologne shows that the income situation in the pensioner population in Germany is very heterogeneous and therefore has different effects on the market and the financial sector.