2023-10-06 16:45:00
The recent rise in food and energy prices is putting a lot of pressure on Germans. According to a survey conducted by the public opinion research institute YouGov on behalf of the insurance company Axa, since the start of the war in Ukraine and rising inflation in Germany, about a third (32 percent) of respondents have less confidence in pension savings than before. More than half (59 percent) said they would like to take more steps to ensure stability as they age, but are unable to afford it financially. And about a third said they were not saving at all for retirement.
At the same time, 9 percent of respondents said that they invest more than 400 euros per month in private pensions. 10 percent save between 200 and 300 euros per month. 15 percent – from 100 to 200 euros, and the same amount – less than 100 euros per month.
There is no hope for politics
There is little hope that politicians will soon solve the pension problem. In September, more than two-thirds (67 percent) of those surveyed said they had lost confidence in politics on the issue. Among them, people over 55 expressed the most disappointment – 72 percent.
Consumer advocates have been calling for comprehensive private pension reform for years. A commission created by the federal government presented proposals in this regard in the summer. It is expected that in the future, citizens will be offered private pension savings plans with more acceptable conditions and higher returns.
Every third German has reduced payments to private pension fundsPhoto: picture-alliance/dpa
In Germany, every year there are more and more people of retirement age. In 2021, there were just over 21 million pensioners in Germany. This includes about 4 million people who receive payments from private pension funds or a survivor’s pension. Of the total number of German citizens – about 82 million people – approximately a quarter receive a pension from the compulsory pension insurance fund. The largest share of payments under compulsory pension insurance falls on old-age pensions – about 18.5 million pensions.
As of 2020, the state of Saxony-Anhalt had the most pensioners with 32.1 percent, followed by Thuringia with 31.3 percent, Mecklenburg-Vorpommern with 31.1 percent, Saxony with 30.6 percent and Brandenburg. – 29.4 percent. The fewest pensioners lived in Hamburg and Berlin – 18.5 and 20.7 percent, respectively. These data are provided by the German pension insurance fund Deutsche Rentenversicherung.
How much do pensioners earn in Germany?
In Germany, in 2031, you will be able to retire at 67 years old. Calculating a pension in Germany is a rather complicated matter. Not only the length of service and the amount of deductions are taken into account, but also the age of the person retiring, the period of study, the presence of children, parental leave, military service and other life circumstances. All data is recalculated into so-called “pension points”, and then into the corresponding specific amounts.
Monthly pension contributions employee’s state pension insurance amounts to 18.6 percent of salary before taxes, half of this amount is contributed by the employer. What is the average pension you get as a result?
After 45 years of insurance, the average state pension throughout the country is 1,543 euros per month, the RND news agency cites excerpts from the response of the Ministry of Labor to a request from the Left Party faction. However, there are differences between the eastern and western lands. Thus, as of December 2022, pensioners in western Germany received 1,605 euros per month, and in the east – 1,403 euros.
Pensioners in North Rhine-Westphalia receive the most money: 1,845 euros per month. In Lower Saxony, on the contrary, the pension is the lowest – an average of 1,267 euros per month. As reported by the Federal Labor Agency, since July this year, pensions in the eastern states have increased by 5.86 percent, and in the western states by 4.39 percent.
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