Who can get by on €936 a month?

The German federal government is currently revising the social security systems, including pensions. Whether people will have to work longer, whether contributions will increase, or whether a "Boomer solidarity tax" will be introduced to balance out differences within the boomer generation has not yet been decided. One thing is certain: there is an imbalance in pensions, which has been apparent for a long time. After all, the fact that fewer and fewer working people have to support more and more retirees is nothing new. Previous governments have let the issue slide because, from a political perspective, it is unpopular to tackle it head-on.

Pension payments are often below expectations

It is to be welcomed that pensions are now in focus and that there are numerous studies on the subject. For example, the German Insurance Association (GDV), together with the economic research institute Prognos, has calculated the pension payment amounts for all German districts for the year 2023. Something that will be an eye-opener for many: these payment amounts are likely to be well below what most people expect. The results also reveal significant differences in pension provision between men and women. In particular, the gap is very large in the western federal states of Germany.

Women received an average pension payment of €936

On average across Germany, men receive about 50% more statutory pension than women. “In western Germany, men receive 66% more statutory pension than women,” explains Moritz Schumann, Deputy CEO of the GDV. This difference refers to pension payment amounts - that is, the monthly statutory pension paid out after deduction of health and long-term care insurance contributions, based on entitlements earned from one’s own contributions. While women received an average monthly pension payment of €936 nationwide, men received €491 more per month. However, women’s pensions have risen much more sharply than men’s over the past ten years: from 2013 to 2023, the average pension for women increased by 62%, compared to only 30% for men.

Women pay less into the pension funds and receive less in return

This gender pension gap reflects typical differences in the employment histories of men and women. Since men still do not share care work equally, women often take on these responsibilities. As a result, they are more likely to work part-time and interrupt their careers more frequently and for longer periods than men. They are also more often employed in lower-paid professions. “This means that women pay less into pension funds and retirement savings, and are therefore worse off financially in old age compared to men. That is a significant disadvantage,” says Schumann.

Gender pension gap smaller in the new federal states

The gender pension gap also differs significantly by region. In eastern Germany, the gender pension gap is only 16%, much smaller than in western Germany. This is due to the historically higher labor force participation of women in the eastern federal states. On a positive note: nationwide, women’s labor force participation is expected to increase, leading to higher pensions. Overall, the average pension payment (men and women combined) is €1,149 nationwide. “That alone is not enough to live comfortably in retirement—neither today nor in the future. The demographic shift is putting increasing pressure on our pension system,” says Schumann.

Returning to the gender pension gap: unfortunately, it affects all areas of old-age security, including occupational pensions - which are directly linked to women’s labor market participation, and private retirement savings. The study’s authors therefore see an urgent need for action to increase women’s pension incomes.

High returns are important for retirement savings

The insurance industry advocates targeted strengthening of funded pension schemes. “We have long been waiting for reforms that increase the effectiveness and reach of supplementary pension schemes. In private retirement savings, we need better return opportunities while maintaining lifelong security, and a simplified support system that specifically reaches families and people with low incomes,” says Schumann. Even today, the child allowance in the Riester pension scheme helps families and single parents save for retirement.

More pension, more independence, fewer money worries – Five key recommendations

The authors from Prognos and GDV derive five recommendations for improving women’s individual and societal retirement provision:

• Gesamtwirtschaftliche Effekte: Die höhere Erwerbsbeteiligung von Frauen wirkt sich nicht nur auf individuelle Rentenansprüche aus, sondern entlastet auch das Rentensystem. Denn eine steigende Erwerbstätigenquote sichert das Rentenniveau und senkt Beitragssätze für alle.
• Vereinbarkeit: Erwerbsarbeit und Kinderbetreuung müssen für Eltern besser vereinbar sein. Das erfordert den Ausbau bedarfsgerechter Kinderbetreuungsangebote sowie eine fairere Beteiligung der Väter an der Care Arbeit.
• Gemeinsam vorsorgen: Finanzielle Benachteiligungen von Frauen, etwa durch Gender Pay Gap und traditionelle Aufgabenverteilungen, führen zu ungleichen Einkommensverteilungen in heterosexuellen Paarhaushalten. Ein partnerschaftliches Vorsorgeverständnis, in dem das gemeinsame Haushaltseinkommen gleichermaßen für die Altersvorsorge aufgeteilt wird, gleicht Unterschiede innerhalb der Partnerschaft aus und erkennt Care Arbeit als Leistung an.
• Betriebsrente mitnehmen: Staatlich gefördert und vom Arbeitgeber bezuschusst, sind Betriebsrenten auch bei kleineren Eigenbeträgen ein wichtiger Baustein für die Altersvorsorge. Das Angebot steht allen Beschäftigten offen. Die Versicherer setzen sich für eine Reform ein, damit Betriebsrenten noch mehr Menschen erreichen und attraktivere Renditechancen bieten.
• Früh starten – länger sparen: Langes Sparen bei gleichzeitig geringeren Beiträgen führt dank Zinseszinseffekt zu attraktiven Renten. Späteinsteiger/-innen müssen für ähnlich hohe Renten deutlich mehr sparen.

Fazit: Die Rente ist kein Schicksal, sondern sie lässt sich gestalten. Dazu muss man sich nicht nur mit dem Thema beschäftigen, sondern man sollte auch renditeträchtige Anlageformen auswählen – sonst hilft auch der vielbemühte Zinseszins-Effekt nicht wirklich weiter.

Foto: Canva (2025)

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