Pension benefits for women in the Eastern region are €357 more than in the Western region.
In Germany, the Gender Pension Gap (GPG) remains a significant issue, reflecting broader societal and economic disparities. While specific regional data might not be readily available, the overall gap is influenced by several key factors.
One of the primary contributors to the pension gap is the lifetime earnings of women. Due to lower wages and career interruptions, women's pension contributions and overall retirement savings are impacted. Career interruptions, often for family or caregiving responsibilities, also reduce working years and thus pension entitlements.
Differences in employment patterns, such as part-time work, can also affect pension accumulation. Part-time workers may contribute less to pension funds. The German public pension system, a significant source of income in old age, may not adequately address career breaks or lower earnings.
While regional data within Germany might not be readily available, regional variations might arise from differences in economic conditions, employment opportunities, and social policies. For instance, urban areas might offer more job opportunities with better pay and benefits, potentially reducing the pension gap. Regions with stronger economies might have higher average salaries, which could impact pension contributions.
In terms of average pensions, women in the western German states receive an average of less than 1,000 euros per month, with the Rhineland-Palatinate Eifel district of Bitburg-Prüm having the nationwide lowest average monthly pension for women at 668 euros. In contrast, women in Potsdam receive the highest average monthly pension nationwide, at 1,314 euros.
The gap between men's and women's pensions in the old federal states remains significant, with men receiving an average pension that is two-thirds higher than women. The district of Waldshut in the Black Forest has the nationwide lowest average monthly pension for men, at 1,201 euros, while the Ruhr area in Germany has the nationwide highest average monthly pension for men, with Bottrop district averaging 1,686 euros.
In eastern German states, no federal state in 2023 had an average pension for a woman less than 1,100 euros. Among men, the gap in pensions between western and eastern German states is minimal, with average monthly pensions of 1,430 euros in the west and 1,416 euros in the east.
To address the pension gap, initiatives such as promoting equal pay, supporting career continuity, and enhancing financial literacy are crucial. Additionally, employers and policymakers can implement strategies like flexible work arrangements and increased pension contributions for part-time workers.
These findings were calculated by the Prognos Institute and the German Insurance Association (GDV). It is essential to continue efforts to bridge the pension gap and ensure a fair retirement for all Germans.
[1] https://www.bundesverband-der-versicherungswirtschaft.de/fileadmin/user_upload/downloads/publikationen/2021/Gleichstellung-in-der-Rente.pdf [3] https://www.bundesverband-der-versicherungswirtschaft.de/fileadmin/user_upload/downloads/publikationen/2021/Gleichstellung-in-der-Rente.pdf [5] https://www.bundesverband-der-versicherungswirtschaft.de/fileadmin/user_upload/downloads/publikationen/2021/Gleichstellung-in-der-Rente.pdf
- To effectively address the pension gap in Germany, it is necessary to implement wealth-management strategies that take into account the unique financial challenges faced by women, such as lower lifetime earnings and career interruptions, in their personal-finance planning.
- The uneven distribution of pension entitlements across regions in Germany, as indicated by the significant gap in average pensions between western and eastern states, highlights the need for regional policy interventions aimed at ensuring financial equity, particularly in areas with lower average salaries and fewer job opportunities.
