Pensioners live particularly cheaply in the East
Pensioners live the most comfortable financial lives in eastern Germany. According to an analysis by the Prognos Institute, high pensions meet a low cost of living there. This ratio ensures high pension purchasing power. The older generation is particularly well off in one city.
According to a new study, pensioners in eastern Germany are in a more comfortable financial position than those in the west. The ratio of housing costs to pension income was particularly favorable in Gera in 2021. This was the result of an analysis by the Prognos Institute. In contrast, regional pension purchasing power was lowest in western Germany and in the south, particularly in Bavaria. The study was commissioned by the German Insurance Association in Berlin.
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.
Gera is the front runner
In Gera, the average monthly pension purchasing power in 2021 was 1437 euros, well above the national average of 1036 euros. Gera is followed in the top five by four other eastern German municipalities: Chemnitz, Cottbus, Görlitz and the district of Spree-Neisse.
"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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The Prognos Institute's study revealed that Gera, an eastern German city, had the highest pension purchasing power in 2021, at 1437 euros per month, making it an attractive retirement destination for pensioners due to its favorable cost of living and high pensions. Conversely, international students might find that apartments in Bavaria, known for its high living expenses, are more expensive than those in other parts of Germany, hindering their pension savings.
Source: www.ntv.de
