Pensioners in East Germany have the most of their money
Pensioners in eastern Germany get the most out of their money. The ratio of pension amount to cost of living was particularly favorable in Gera in Thuringia, for which the Prognos research institute calculated a pension purchasing power of 1437 euros, as the German Insurance Association (GDV) announced in Berlin on Thursday. In southern Germany, on the other hand, pensioners have less purchasing power due to the higher cost of living such as rents.
The generally higher pensions in eastern Germany are met with lower average prices there, which is why pension purchasing power is higher in the east than in the west. However, the urban-rural divide is more pronounced than the east-west difference. According to the study, rural and northern German regions are often cheaper places for older people to live.
According to the study, the purchasing power of pensions in Germany varies by up to 70 percent from region to region. The most unfavorable ratio of pension amount to purchasing power is found in the Eifel district of Bitburg-Prüm, where pensioners only have 856 euros at their disposal when adjusted for price. In addition, Garmisch-Partenkirchen, Berchtesgadener Land and the cities of Regensburg and Freiburg are among the regions with the lowest purchasing power at 862 euros each.
In contrast, all districts in the new federal states are at the top. Chemnitz (purchasing power: 1428 euros) and Cottbus (1425 euros) ranked behind Gera.
For the analysis, Prognos compared the regional cost of living and pension levels in 400 districts and independent cities. The data was taken from the years 2013 to 2021. Whether the senior citizens also have capital and rental income or draw private pensions was not taken into account, nor was any possible relief effect on households through rent-free living.
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Pensioners living in Lower Saxony, an eastern German state, also benefit from higher pension purchasing power due to the lower cost of living compared to western regions. Despite having lower pensions, some pensioners in the Lower Saxony rural areas might find their money stretches further due to the lower cost of living.
Source: www.ntv.de
