Pension: One in four after 45 years of contributions only less than 1300 euros

Berlin. More than one in four people with at least 45 years of membership in the statutory pension insurance system in Germany receives less than €1,300 in pensions per month. On average, the more than 5.5 million pensioners with at least 45 years of insurance receive €1,668. This is according to the Federal Ministry of Labor's response to a question from Dietmar Bartsch, a member of the Left Party, which was received by the German Press Agency in Berlin.

There are significant regional differences and an east-west divide. In the west, the average pension after 45 years is €1,729, while in the east it is €1,527. Hamburg has the highest pension at €1,787, while Thuringia brings up the rear at €1,491.

Men with at least 45 years of insurance receive an average of €1,778 nationwide. For women, the average pension paid out is €1,449.

Dietmar Bartsch (The Left) speaks during the general debate on the budget in the plenary session of the Bundestag.

Source: Carsten Koall/dpa

Bartsch said: "If one in four pensioners has to make do with less than 1,300 euros in pension after 45 years of work, that is a disgrace for politics, for a clearly flawed pension policy." The level of the average pension shows "how inadequate the statutory pension is in securing financial support in old age."

However, the government points out that the figures do not fully reflect the financial situation of those affected. Pension amounts range from small to relatively high amounts.

According to the ministry, this is also due to the composition of the requested periods: "Comparatively low pensions can also result from 45 years of insurance, as this includes not only contribution periods but also non-contribution periods." This includes periods of school and university education, as well as periods of unemployment without unemployment benefits. Part-time work may also play a role.

In addition, the government points out the difference between pension and overall income: "A low pension from the statutory pension insurance generally says little about the standard of living in old age, since other income and overall household income are relevant."

For example, women often only receive a small pension if they have remained married for years without earning their own income – even if they have a sufficient joint household income with their partner, for example.

Seniors walk through Cologne city center.

Source: Thomas Banneyer/dpa

Bartsch reiterated the Left Party's calls for a reversal in pension policy. While pension levels in other European countries exceed 80 percent, millions of pensioners in Germany have to make do with mini-pensions: "The 'stabilization' of pension levels promised by the federal government is not, in fact, good news; in reality, it's a threat that everything will stay as it is." Bartsch demanded that all working people, not just dependent employees, should contribute to the pension fund.

Federal Minister of Social Affairs Bärbel Bas (SPD) presented the draft of her first pension law at the end of June. According to this bill, the pension level is to remain stabilized at 48 percent. Pensioners can therefore hope for rising pensions despite the aging population.

The pension level indicates the ratio of pensions to wages—if this ratio is stable, pensions do not lag behind wages. While employers criticize the billions of euros in associated costs, unions are demanding a significantly higher pension level.

RND/dpa