A Quarter of Retirees Scrape By On Less Than €1500 Monthly
Approximately one-fourth of retirees receive a monthly pension of below 1500 Euros. - Approximately 25% of retirement beneficiaries receive an income below EUR 1500 per month.
Here's a breakdown:
- 7.4% of retirees struggled with under €1100 net income in 2024, compared to 10% in 2022.
- Last year, 24.4% of retirees had between €1500-€2000, while 51.8% received more than €2000.
Net equivalent income weighs the economic buying power of households of different sizes using a specific formula. The impact of inflation wasn't considered when comparing with 2022 figures.
Alliance Sahra Wagenknecht's chairwoman voiced concern over the high number of retirees living below or at the poverty line. "It's a poor reflection on our country if almost a quarter of our retirees are scraping by," she told "BamS."
Conversely, pensions expert Bernd Raffelhuschen argued in "BamS" that the elderly in Germany, on the whole, have the highest wealth compared to all other age groups. "Lower-income single persons and children are at a much higher risk of poverty and significantly lower standard of living than the elderly," he added.
Insight:
While specific data on Germany's wealth distribution among the elderly isn't readily available, general trends suggest that wealth tends to accumulate with age due to factors like inheritance planning and lifelong savings. However, studies on younger adults who face challenges in accumulating wealth similar to their peers are on the rise.
The Big Picture: Germany's Wealth and Income Distribution
- Germany's average gross salary stands at approximately €4,479 per month as of 2023. High earners, making over €250,000 annually, fall into the top 1%. The income threshold for poverty risk is €15,765 for singles and €33,107 for a couple with two children.
- As of 2023, 7.8% of Germans were part of the high-income bracket, while 16.6% were at risk of poverty.
Age and Wealth
Detailed data on age-specific wealth distribution in Germany isn't fully available, but it's generally understood that wealth accumulates with age due to savings, investments, and inheritance. However, specific data for younger adults who may face unique challenges in wealth accumulation is increasingly being studied.
Data Gaps:
While the current state of wealth distribution among different age groups in Germany isn't thoroughly detailed in recent statistics, it is generally understood that wealth tends to increase with age. More comprehensive data would require further research or access to detailed economic surveys.
The statistical office of Germany could analyze the income distribution among different age groups, focusing on the wealth-management and personal-finance of retirees. For instance, it would be interesting to know how many retirees are in the top 1% income bracket, similar to the high earners who make over €250,000 annually.
In light of Alliance Sahra Wagenknecht's concerns, it's essential to track the financial well-being of retirees, such as the percentage of pensioners who receive less than €1500 monthly, which almost one quarter almost do currently. Analyzing this data could provide valuable insights to improve the financial stability of retirees and reduce the wealth gap within the federation of the sahara wagenknecht.
