According to recent data released by the Federal Statistical Office (Destatis), a significant portion of retirees in Germany face varying levels of financial security. Approximately 20 percent of individuals aged 65 and over receiving retirement benefits have a net equivalent income of no more than €1,400 per month. A further 20 percent have income between €1,400 and approximately €1,790 per month, while the top 20 percent enjoy a monthly net income exceeding €2,870.
The analysis considers individuals aged 65 or older, currently numbering 16.3 million. The net equivalent income-a measure that adjusts income to account for differences in household composition-provides a standardized comparison. The median net equivalent income for this age group stands at €1,990 per month, indicating that half of retirees have income below this level while the other half have more. This figure is slightly below the median net equivalent income for the overall population, which is approximately €2,300 per month.
The number of retirees and their incomes have steadily increased in recent years. In 2021, the group comprised 15.9 million individuals with an average monthly income of around €1,820, which has risen by 9 percent by 2024. Income for the overall population rose by 11 percent over the same period.
The primary source of income for retirees is typically pension and annuity payments, although other sources also contribute. In households consisting solely of retirees, pensions and annuities account for an average of 92 percent of income, with 5 percent from asset income, 2 percent from employment and 1 percent from transfers like old-age security.
A notable gender disparity exists in retirement income. Women receiving pensions or annuities receive an average of approximately €1,720 gross per month, compared to around €2,320 for men. This represents a gender pension gap of 25.8 percent, largely attributable to women’s historically lower rates of employment. When considering only earned pensions (excluding survivor benefits), which are derived from a spouse’s employment history, the gap widens to 36.9 percent.
While the overall gender pension gap has narrowed somewhat due to increases in women’s incomes, it remains a significant issue. In 2021, the gap was 29.8 percent for all pension income and 41.0 percent for income excluding survivor benefits.
An increasing number of retirees are reliant on state support. At the end of 2024, nearly 739,000 individuals received basic income support for the elderly (SGB XII), meaning they have reached or exceeded the statutory retirement age and cannot meet their living expenses from their own income or assets. This number has risen steadily in recent years, with a 7.1 percent increase compared to the previous year and a 31.0 percent increase compared to the end of 2020. This increase is partly influenced by the inclusion of eligible Ukrainian citizens. As a result, 4.1 percent of this age group relied on basic income support at the end of 2024, compared to 3.9 percent one year prior and 3.2 percent four years ago.