What is the average pension in Germany and how has it changed over the years? Although German pension benefits are among the higher ones in Europe, the real value of pensions does not always keep pace with rising living costs. Currently, the average pension in Germany is about 1604 euros gross, but this amount varies by region, working time, and gender. Pensions in East Germany are still lower than in the West, and women receive on average several hundred euros less than men.
Average pension in Germany – what is it now and how does it differ between regions?
The amount of pension benefits in Germany depends on many factors, but one of the key questions is the region of pension residence. The average pension in Germany is currently about 1620-1640 euros gross monthly, but this value is not the same for the whole country. Pensioners in the western states receive on average 1663 euros, while in East Germany the average benefit 1471 euros is. However, it should be noted that thanks to the process of gradual pension adjustment, which began in 2018, these differences are constantly decreasing. By 2025, the average pension in the eastern states is already about 90-92% of the western level, which represents significant progress towards equal treatment of all pensioners regardless of the region.
These differences result from historical divisions – for years, the eastern part of the country had lower wages, affecting the amount of contributions paid. The German authorities are systematically increasing pensions in the eastern states to equalize them with the western ones, but despite the years, it has not yet been possible to achieve full equality. For many individuals, especially those who have worked all their lives in the East, lower benefits can mean financial difficulties, especially if they lack additional security in the form of private savings or occupational pensions.
How has the average pension in Germany changed in recent years? Increases and real value of benefits
Theoretically, German pensions are regularly adjusted, but in practice, benefit increases do not always keep pace with rising living costs. In recent years, pensioners could expect increases – in July 2022 benefits increased by 5.35% in the western states and 6.12% in the eastern, and 2023 by 4.39% and 5.86%, respectively for West and East Germany. The next increase scheduled for July 2025 is expected to be 3.74% for the whole country. Despite these changes, the real value of pensions compared to the average wage in Germany is decreasing – back in the 1970s, benefits accounted for about 55% of the average salary, today it is under 48%. This means that German pensioners, who do not have additional savings or private pension plans, need to pay more attention to their expenses, especially given rising prices for rent, energy, and healthcare.
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Men versus women – is the level of pensions in Germany fair?
The division into East and West is just one of the factors influencing the differences in German pensions – another is the gender of the pensioners. Men receive significantly higher benefits than women, which is mainly due to their longer working hours and higher incomes. The average net pension in Germany for men is about 1346 euros, while women receive on average 903 euros monthly. For individuals with full 45-year working time this difference amounts to 314 euros – men receive on average 1637 euros and women 1323 euros. This results mainly from the fact that women more often worked part-time took career breaks related to motherhood, and more often chose lower-paid professions. Although the German social security system provides additional pension points for child-rearing, this is still not enough to compensate for the differences in benefit levels.
Does the German pension allow for a dignified life? Benefit level vs. living costs
On paper, German pensions look good, but the real situation of pensioners depends on where they live and what living costs they have. What the average pension in Germany is is one thing, but whether it is sufficient to cover expenses is just as important. Living costs in Germany vary by region – in big cities like Berlin, Hamburg or Munich rent eats up a significant portion of the pension, and to this are added bills for electricity, water, and healthcare. The average pension in Germany is 1604 euros gross, but after deducting taxes and health contributions, many seniors have about 1200-1300 euros net. In smaller locations, one can live relatively comfortably on this, especially if someone owns their own home. For this reason, more and more German pensioners are considering relocating to cheaper countries like Spain or Portugal, where living costs are lower and the climate is milder.
How is the pension in Germany calculated? Key principles and point system
The amount of the German pension is not fixed – it depends on the number of years worked, income level, and the contribution system. Germany applies the so-called point system, where each working year and income level translate into a certain number of pension points. If one earns at the level of the national average , they receive 1 point each year. The current value of a point is 40 euros in Germany. This means that a person who has accumulated 0.8 points annually on average over 35 years , can expect a pension of about 1100-1200 euros gross. High incomes allow for collecting more points and thus receiving higher benefits. Additionally, the German pension system provides extra points for child-rearing, disability, and other factors that can increase future benefits.
Maciej Szewczyk
He gained experience as a consultant on IT projects for many international companies. In 2017, he founded the startup taxando GmbH, where he developed the innovative tax app Taxando, which simplifies the filing of annual tax returns.
Maciej Szewczyk combines technological expertise with in-depth knowledge of tax regulations, making him an expert in his field. In his private life, he is a happy husband and father and lives with his family in Berlin.
