Old-age poverty

Old-age poverty (Altersarmut) means not having enough money to live on in retirement. In Germany this affects almost one in five pensioners.

Definition:

• At risk of poverty in 2025: anyone with a net pension of less than €1,314
• At-risk-of-poverty rate 65+: 18.1% (2023)
• Basic income support in old age: over 730,000 recipients – a new record

Who is particularly affected?

• Women: 21.6% at risk of poverty (men: 17.1%). Average net old-age pension for women: €985/month vs. men: €1,486
• Eastern Germany: 24% of 60–69-year-olds at risk of poverty. In Thuringia, 52% don't reach a pension above the poverty line even after 40 contribution years
• Long-term unemployed: missing contribution years = minimal pension
• Solo self-employed: often no statutory pension and no private provision

Basic income support in old age (Social Code XII):

• Entitlement if the pension is below the subsistence minimum
• Covers accommodation, heating and living costs
• High number of unreported cases: many don't apply out of shame

Prevention – what you can do NOW:

• Read your pension information letter and calculate your pension gap
• Avoid gaps in employment (part-time work reduces your pension dramatically!)
• Start an ETF savings plan – even €100/month makes a huge difference over 30 years
• Check your eligibility for the basic pension (Grundrente) (from 33 years of contributions)