Editor in chief at IamExpat Media
For years, the average retirement age in Germany has been increasing, but 2021 saw a little blip in the trend, with employees retiring a little earlier and with slightly higher pension benefits than in previous years.
On average, people working in Germany retired a little earlier last year and with slightly higher pensions, according to new figures from the Deutsche Rentenversicherung, which were made available to Bild.
In total, 1,435 million employees retired in 2021. On average, men started claiming their state pension at the age of 64,05 years last year - 0,02 years earlier than in 2020 - while women retired at the age of 64,18 years, compared to 64,24 the previous year.
The figures also show that the average benefit claimed by new pensioners in 2021 was higher than in previous years. Men received 1.204 euros net per month (up from 1.171 in 2020), while women received 856 euros (up from 827). On average, men’s statutory pensions continue to be around 40 percent higher than women's.
The highest average pensions were given to senior citizens who retired after 45 years of contributing to the German social security system - 1.235,28 euros per month for women and 1.579,49 euros for men.
Pensioners in Germany can look forward to their monthly payments increasing significantly this year. The federal government agreed in April that pensions in the eastern federal states should increase by 6,12 percent from July 1, and by 5,35 percent in the western federal states. However, much of this growth will be consumed by inflation, with the inflation rate having now surpassed 7 percent.
The German pension system is facing a funding crisis as people continue to live longer and longer. Currently, the retirement age is being increased by a month each year until it hits 67, but some experts are calling for it to be raised even higher, to help ensure the system’s sustainability. Even without the statutory retirement age being raised, a growing number of people are working beyond retirement age.