Alterssrente - Rent of 1,200 Euro for every fifth long-term insured person
In Germany, every fifth person with at least 45 years of insurance contributions receives a pension below 1,200 Euro. This is shown in the Federal Government's response to Sahra Wagenknecht, leader of the namesake Bundestags group BSW, obtained by the German Press Agency in Berlin. In 2021, around 1.08 million pensioners with at least 45 years of insurance received a pension below 1,200 Euro.
The proportions of particularly long-term pensioners with low pensions are even higher in the eastern states. For instance, around 71,000 people in Brandenburg and 212,000 of these long-term pensioners in Brandenburg receive a pension below 1,200 Euro, while 145,000 in Sachsen and 363,000 in Thuringen receive a higher pension.
Closing words Thuringia
Wagenknecht also asked about the average pension after at least 45 years of insurance. The answer: nationwide, 1,604 Euro. In the West, it is 1,663 Euro (as of December 2023), and in the East, 1,471 Euro. Following Hamburg with 1,721 and North Rhine-Westphalia with 1,709 Euro, all western German states and Berlin are above 1,600 Euro.
Below: Brandenburg (1,500 Euro), Saxony (1,458 Euro), Mecklenburg-Vorpommern (1,455 Euro), Saxony-Anhalt (1,452 Euro), and as an afterthought, Thuringia (1,437 Euro) - the eastern federal states. However, Wagenknecht only asked about pensions after at least 45 years. The average pensions, on the other hand, are higher in the East than in the West - because many have worked longer there, especially women.
"Germans should no longer accept such low pensions"
"Average pension of 1,604 Euro after at least 45 working years - this figure shows how weak the German pension system is," Wagenknecht told the dpa. "That every fifth pensioner after 45 working years even receives less than 1,200 Euro in pension is a political scandal."
The upcoming Bundestag election campaign is expected to include a referendum on the statutory pension, as Wagenknecht announced. "Germans should no longer accept such low pensions, which are also heavily taxed," she said.
Why are pensions low?
Low pensions have several causes. For one, many self-employed, civil servants, or housewives receive a statutory old-age pension because they have paid contributions into the pension insurance for at least five years. The subsequent benefits remain low.
Additionally, many West German women have pension-reducing factors such as longer periods of inactivity, more part-time work, and lower wages. The Federal Labor Ministry emphasized in its response to Wagenknecht that the pension amount cannot be directly inferred from the overall income. For many senior women and men, additional income comes from other sources. The Ministry also referred to the household context - cases of mostly partners with lower pensions but sufficient overall situation.
Austria as a role model?
Wagenknecht demands that Germany should take an example from a neighboring country - Austria. The average pension for long-term insured individuals there is 800 Euro higher. "What works there, should also be possible here," said Wagenknecht. "We need higher pensions according to the Austrian model and a pension tax brake." In comparison to the EU average, the pension level in Germany is roughly ten percentage points too low.
What stands out in the pension comparison with Austria? In fact, noticeably earlier and higher pensions. The main reason for this is a pension reform about 20 years ago: In Austria, almost all employees pay into the statutory pension insurance, including civil servants. Both the tax credit for pensions and the contribution rates are higher than in Germany, significantly so. A pension is received in Austria only after 15 years. Therefore, the average pensions are higher. The contribution rate is higher in Austria than in Germany. The employer pays more than the employee, the distribution is not equal.
- In Austria, the average pension for long-term insured individuals is 800 Euro higher than in Germany, a fact that Sahra Wagenknecht, leader of the BSW Bundestags group, suggests Germany should emulate.
- Wagenknecht's call for higher pensions according to the Austrian model and a pension tax brake is in response to the Federal Government's response to her query about pension levels.
- Brandenburg, with an average pension of 1,500 Euro, is among the eastern states in Germany that have lower pension levels compared to the western states.
- In Saxony, the average pension stands at 1,458 Euro, while in Mecklenburg-Vorpommern, it is 1,455 Euro - both lower than the German average of 1,604 Euro.
- The Federal Labor Ministry, in response to Wagenknecht's concerns about low pensions, noted that the pension amount cannot be directly inferred from overall income and that many senior women and men have additional income sources.
- In Austria, both employees and civil servants contribute to the statutory pension insurance, which results in higher contribution rates and earlier and higher pensions compared to Germany.
- Wagenknecht's concerns about low pensions and the call for a pension tax brake have sparked discussions about potential pension reforms in the upcoming Bundestag election campaign.
- The pension comparison between Germany and Austria highlights the need for pension reforms in Germany to address the issue of low pensions, especially in the eastern states.
- In North Rhine-Westphalia, the average pension after at least 45 years of insurance contributes to the western German states' pension levels that are generally higher than those in the eastern states.
