Despite having paid into the German pension system for at least 45 years, one in five retirees in Germany still receive less than 1.200 euros per month in their pension packets, new data has revealed. In eastern Germany, the proportion is as high as one in three. 

One in five pensioners in Germany receive less than 1.200 euros

The state pension system in Germany is designed to provide all retirees with a basic income in retirement, provided they have made contributions to the system for at least 33 years. 

However, this week the dpa has reported that, based on information issued by the federal government to the left-wing Bundestag member Sahra Wagenknecht, 1,08 million out of the 5,40 million old-age pensioners in Germany receive a monthly pension of less than 1.200 euros, despite having contributed to the system for at least 45 years. That equates to one in five.

The problem is especially severe in the eastern German federal states, where the proportion of those who receive a small pension despite having a long record of contributions is even higher than in the west. In Brandenburg, for example, around 71.000 people receive a pension of less than 1.200 euros after 45 years of contributions, out of a total of 212.000 pensioners (one in three). In Saxony and Thuringia, the proportion is almost 40 percent. 

What is the average pension in Germany in 2023?

The data provided to Wagenknecht also revealed what the average pension in Germany is, as of the end of 2023: 1.604 euros nationwide. In western Germany, the average is 1.663 euros, compared to 1.471 euros in western Germany. 

The highest pensions are received in the states of Hamburg (1.721 euros) and North Rhine-Westphalia (1.709 euros), while the lowest pensions are in Mecklenburg-Vorpommern (1.455 euros), Saxony-Anhalt (1.452 euros) and Thuringia (1.437 euros). 

Wagenknecht calls for Austrian-style reform of German pension system

“The fact that one in five pensioners receives less than 1.200 euros in pension after 45 years of work is a political scandal,” Wagenknecht told the dpa. She pointed to neighbouring Austria - where the average pension is 800 euros more - as an example of a successful reform. “We need higher pensions based on the Austrian model and lower taxes on pensions,” she said.

20 years ago, Austria made several changes to its pension system. Chief among them was requiring all employees - including civil servants - to pay into the state pension fund. Employers were also asked to pay more into the system than employees, in comparison to Germany, where the contribution is split equally between employer and employee. The minimum contribution period for receiving an Austrian state pension was also increased to 15 years - much more than Germany’s five years. 

In its response to Wagenknecht, Germany’s Federal Ministry of Labour said that the state pension alone cannot be used to determine the overall income of a pensioner, as many senior citizens have other sources of income - for instance, people with a lower pension are sometimes reliant on their spouse or partner’s pension.