Pensions in Germany are on the rise after a long period of small increases in the average monthly income for retirees. Nevertheless, many pensioners are struggling to make ends meet and the Left Party are calling for an end to the unequal “two-tier” pension system.
Over the past 10 years, the average pension in Germany has seen, at best, minimal increases and, at worst, slow but steady decreases. Now, pensioners are finally seeing a significant and sharp increase in their average monthly income. In 2022 the pensioners received an average of 63 euros more per month than in 2021. This increase brought their average monthly income after tax from 1.089 to 1.152 euros.
Behind this 2022 average lies a gendered discrepancy; while male pensioners received an average of 1.276 euros per month (68 euros more than previously), retired women received only 1.060 euros, an increase of 59 euros.
Despite the increases, Germany’s Left Party (die Linke) have recently set out to refocus public attention on the inequalities of Germany’s pension system.
While everyone who works in Germany is obliged to contribute a percentage of their monthly income to their state pension, a smaller number also contribute to a voluntary, private pension scheme. This, the Left Party says, leads to a “two-tier society” among retired people.
Though the aforementioned increase of 63 euros means retired people receive an average monthly pension of 1.152 euros, the Left Party has pointed out that just over half of retired people still receive less than 1.000 euros per month. In contrast, 70 percent of those who have contributed to private pension funds receive more than 2.000 euros per month.
“The findings are clear,” Left Party member Dietmar Bartsch told Augsburger Allgemeine newspaper, “at the end of a long working life, there is a two-tier society in old age.” Bartsch and his party are calling for a “general overhaul” to Germany’s pension system, whereby retirees would receive a monthly state pension of 1.200 after tax.
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