Avoiding old-age poverty

Old-age poverty – the silent crisis in Germany:

Who is affected?

• Women: average pension €890/month (men: €1,200)
• Part-time workers: half the working hours = half the pension entitlement
• Low earners: 45 years on the minimum wage = approx. €1,050 gross pension
• Self-employed: no obligation to pay into pension insurance = often zero pension

How much do you need in old age?

• Rule of thumb: 80% of your last net income
• With €2,000 net: approx. €1,600/month
• The statutory pension only covers approx. 48% of gross pay → a gap!

What you can do NOW:

At 20–30: start an ETF savings plan (even €50/month!). Occupational disability insurance. Use capital-forming benefits (VL)

At 30–40: increase your savings rate. Calculate your pension gap. Check Riester for families

At 40–50: maximise your savings rate. Consider property. Use the company pension scheme

At 50+: adjust your portfolio. Consider a partial pension. Become debt-free before retirement

If money is already tight:

✅ Basic income support in old age: approx. €950/month + rent. Not enough, but better than nothing
✅ Housing benefit (Wohngeld): also possible (up to €370/month)
✅ Pension advice: social associations and the VdK help free of charge