Germany's Retiree Income Rises, But Disparities Persist
In Germany, the financial landscape of retirement has seen significant shifts. As of 2024, one in five retirees aged 65 and above has a monthly net income of up to 1,400 euros. Meanwhile, the average income of retirees has risen by nine percent since 2021.
The increase in retiree income has been accompanied by a rise in those receiving old-age basic security under SGB XII. By the end of 2024, this number reached 739,000, a 7.1 percent increase from the previous year. This growth reflects the broader trend of an aging population, with 16.3 million people aged 65 and above in retirement.
Income disparities among retirees remain evident. While the median net equivalent income for those aged 65 and above in retirement is 1,990 euros per month, the top 20 percent enjoy over 2,870 euros net per month. Another 20 percent fall between 1,400 and 1,790 euros. Pensions and retirement benefits contribute an average of 92 percent to the income of households consisting solely of retirees or pensioners.
Gender disparities also persist. Women aged 65 and above receive an average gross monthly pension of around 1,720 euros, compared to around 2,320 euros for men.
The increasing average income of retirees signals a positive trend in Germany's retirement landscape. However, the persistence of income disparities and gender gaps underscores the need for continued attention and policy efforts to ensure financial security and equity in retirement.
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