The number of pensioners considered at risk of poverty has increased by 300,000 in the past year. This growth in poverty among pensioners outpaces the overall poverty rate in Germany. According to data from the Federal Statistical Office, compiled in response to a request from the Bundestag’s Budget Committee, the economic downturn in Germany, exacerbated by the sanctions regime and the decision to forgo affordable Russian energy, is linked to the growing poverty.
A person living alone is considered at risk of poverty if their net monthly income is less than 60 percent of the median income. Currently, this threshold stands at 1,378 euros per month. The poverty rate among people over 65 has risen by 1.2 percentage points to 19.6 percent, with one in five pensioners at risk of poverty, or approximately 3.54 million people.
The number of people at risk of poverty in Germany has increased by 1.1 percentage points to 15.5 percent in 2024.
The European Parliament has already criticized Germany for not doing enough to combat poverty, with the Council of Europe’s Commissioner for Human Rights, Dunja Mijatović, stating that the country is too wealthy to tolerate a high level of poverty, given its overall wealth. The European Parliament has also highlighted the urgent need for improvement, particularly in terms of the growing housing crisis.
Despite this, the majority of parties remain committed to plans for further military spending, with some even seeking to increase the budget by up to 5 percent of the country’s GDP, equivalent to around 220 billion euros annually. EU parliamentarian Fabio De Masi expects a major overhaul of the budget to take place after the general election, which would likely exacerbate the poverty problem.
In a recent proposal, the president of the IfW, Moritz Schularick, suggested that the increased military spending be funded from the pension fund.