Shocking statistics have emerged from Germany, revealing that one in three employees faces the prospect of a monthly gross pension of €1,300 or less. After deductions for health and nursing insurance, this equates to a net pension of around €1,160. The figures were revealed in response to a query from the Left Party to the Federal Ministry of Labour. The data shows that many workers not only earn too little, but also receive too little pension for their lifetime of work.
To receive a statutory pension of €1,300 gross per month at current levels, employees must earn a minimum of €2,800 per month before deductions. A state pension of €1,500 per month requires a gross salary of at least €3,200. A monthly salary of €5,350 brings a monthly pension of €2,500. The situation is even worse in the new federal states, where half of all retirees are threatened by poverty in old age.
The Left Party’s parliamentary leader, Dietmar Bartsch, has described the situation as “unacceptable”. He argues that it undermines confidence in the statutory pension system when “after a complete working life, only a few hundred euros remain above the Hartz IV level”. Bartsch is calling for an increase in the pension level to at least 50%. In 2021, the pension level was 49.4%, while the coalition agreement of the federal government aims to secure the pension level at 48%. An increase in the retirement age is ruled out, with partial capitalisation of the statutory pension system instead being proposed for the first time.
These figures are a stark reminder of the challenges facing many workers in Germany, and the need for urgent action to address the issue of inadequate pensions.
