Retiree Incomes Rise, but Gap Widens as Poverty Concerns Grow
Retiree incomes have seen a significant rise in recent years, though not as steep as the overall population's. The government plans pension increases, while social groups warn of growing old-age poverty.
Retirees' incomes primarily come from old-age pensions (92 percent), with wealth and employment playing minor roles. From 2021 to 2024, their average income rose by 9 percent, compared to 11 percent for the total population. However, the income gap among retirees is widening. While every fifth retiree lives on less than 1,400 euros net per month, the top 20 percent earn more than 2,870 euros. The average income stands at 1,990 euros. The government aims to increase statutory pensions by 4.6 percent by mid-2024 and 3.8 percent by mid-2025. The current black-red coalition, consisting of the CDU/CSU (Union) and SPD, is developing plans for the so-called 'active pension' (Aktivrente), set to come into effect on January 1, 2026. Social associations caution against increasing old-age poverty and call for pension reforms, as the number of elderly people dependent on basic security continues to rise.
Retiree incomes have grown, but disparities are widening. The government's planned pension increases may help, but social groups urge further reforms to tackle old-age poverty.
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