Altersrenten - Under 1200 Euro rent for each fifth long-term insured person
Every fifth person in Germany with at least 45 years of insurance contributions receives a pension below 1200 Euro. This is shown in the government's response to Sahra Wagenknecht, leader of the namesake Bundestags group BSW, obtained by the German Press Agency in Berlin. In 2023, around 1.08 million pensioners with at least 45 years of insurance received a pension below 1200 Euro.
In eastern German states, the proportion of particularly long-term pensioners with low pensions is even higher than in the west. For instance, around 71,000 people in Brandenburg receive a pension below 1200 Euro after 45 years, while 212,000 of these long-term pensioners live above that amount. In Saxony, the ratio is 145,000 to 363,000, and in Thuringia, it is 74,000 with lower pensions and 189,000 with higher pensions.
The average pension after at least 45 years of contributions was also questioned by Wagenknecht – the answer: 1604 Euro. In the West, it is 1663 Euro (as of December 2023), and in the East, it is 1471 Euro. Leading the west German states are Hamburg with 1721 and North Rhine-Westphalia with 1709 Euro.
Below: Brandenburg (1500 Euro), Saxony (1458), Mecklenburg-Vorpommern (1455), Saxony-Anhalt (1452 Euro), and lastly Thuringia (1437 Euro) – the eastern German states. However, Wagenknecht only asked about pensions after at least 45 years. The averages, on the other hand, are higher in the East – due to many having worked longer, especially women.
Wagenknecht's Inquiry Sparks Pension Debate
"A pension of 1604 Euro on average after at least 45 working years – this shows how weak the German pension system is," Wagenknecht told the DPA. "It's a political scandal that every fifth pensioner after 45 years of work receives even less than 1200 Euro in pension."
The upcoming Bundestag election campaign is expected to include a referendum on the statutory pension, as Wagenknecht announced. "The Germans should no longer tolerate such low pensions, which are also heavily taxed," she said.
Why is the pension so low?
Low pensions have several causes. For one, many self-employed, civil servants, or housewives receive a statutory pension because they have paid contributions into the pension insurance for at least five years. The following payments remain low.
Moreover, pension reductions for many West German women: longer work breaks, more part-time work, lower wages. The Federal Labor Ministry emphasized in its response to Wagenknecht that the pension amount cannot be concluded from the pension level alone. Many senior citizens and seniors have additional income. The Ministry also referred to the household context – cases of mostly partners with lower pensions but an overall sufficient situation.
Austria as a Role Model?
Wagenknecht demands that Germany take an example from a neighboring country – Austria. There, the average pension for long-term insured individuals is 800 Euro higher. "What works there should also be possible here," Wagenknecht said. "We need higher pensions in line with the Austrian model and a pension tax brake." Compared to the EU average, the pension level in Germany is around 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: Almost all earners pay into the statutory pension fund in the neighboring country, including civil servants. Both the tax credit for pensions and the contribution rates are significantly higher there.
One receives a pension in Austria only after 15 years. That's why 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.
- Sahra Wagenknecht, criticizing the German pension system, stated that the average pension after 45 years of contributions is only 1604 Euro, which she deemed too low.
- Compared to Germany, Austria has a more favorable pension system, with an average pension of 800 Euro higher for long-term insured individuals.
- The pension debate in Germany was further fueled when Wagenknecht announced her intention to include a referendum on the statutory pension in the upcoming Bundestag election campaign.
- In Austria, civil servants, among others, contribute to the pension insurance and receive a pension after 15 years, which contributes to the higher average pensions in the country.
