Study - Pensioners live particularly cheaply in the East
Pensioners are in a more comfortable financial position in eastern Germany than in the west, according to a new study. The ratio of housing costs to pension income was particularly favorable in Gera in 2021.
This was the result of a published analysis by the Prognos Institute. In contrast, regional pension purchasing power was lowest in the west of Germany and in the south, particularly in Bavaria. The study was commissioned by the German Insurance Association in Berlin.
"The result is clear"
The economists compared estimated regional rents and the average level of pensions for the 400 districts and independent cities in Germany for the years 2013 to 2021 and used this to calculate local purchasing power. "The result is clear. Pensioners live particularly cheaply in eastern Germany," write the authors. "This is because relatively high pensions meet a low cost of living."
For the study, the authors used figures from the Pension Insurance Research Data Center, which published an evaluation of pension levels at district level for 2021 last autumn. Prognos also used data on asking rents in the relevant years as an indicator of the cost of living. Since 2021, both the cost of living and pensions have risen nationwide due to high inflation.
In Gera, the average monthly pension purchasing power of €1,437 in 2021 was significantly higher than the national average of €1,036. Gera is followed in the top five by four other eastern German municipalities: Chemnitz, Cottbus, Görlitz and the district of Spree-Neisse.
The least favorable municipalities for pensioners
"The opposite is true in Bavaria," the study states. "Pension purchasing power is significantly below average." According to the authors, the generally above-average cost of living in Bavaria is not compensated for by above-average pension income.
According to the Prognos calculation, three of the five municipalities with the lowest pension purchasing power in 2021 were in Bavaria: the districts of Berchtesgadener Land and Garmisch-Partenkirchen as well as Regensburg, each with 862 euros per month.
According to the study, the most unfavorable ratio of housing costs to pension amount nationwide was not in a Bavarian municipality, but in the Eifel district of Bitburg-Prüm in Rhineland-Palatinate. The authors of the study put the monthly pension purchasing power there at 856 euros for 2021. The list of the least favorable municipalities for pensioners is completed by Freiburg im Breisgau in Baden, also with 862 euros per month.
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- Despite living in Bavaria, which has a higher cost of living, the older generation is experiencing lower pension purchasing power compared to pensioners in eastern Germany.
- In contrast to the retired population in the eastern part of Germany, Seniors in regions with higher costs, such as Gera, can still benefit from higher pension purchasing power due to lower living expenses.
- The Prognos Institute's analysis revealed that, in 2021, pensioners in Gera enjoyed a more generous pension purchasing power of €1,437 per month, compared to the national average of €1,036.
- The authors of the study noted that while both pensions and the cost of living have risen nationwide due to high inflation, pension purchasing power remains significantly higher in eastern Germany than in Bavaria.
- The least favorable municipalities for pensioners, with a pension purchasing power of €862 per month, are primarily located in Bavaria, including the district of Berchtesgadener Land.
- The Study found that even outside Bavaria, in Rhineland-Palatinate, the Eifel district of Bitburg-Prüm had an unfavorable ratio of housing costs to pension amount, with a pension purchasing power of only €856 per month, placing it among the least favorable municipalities for pensioners.
Source: www.stern.de
