Eastern women's pension benefits are €357 more than those in the west.

Eastern women's pension benefits are €357 more than those in the west.

In a recent analysis by the Prognos Institute and the German Insurance Association (GDV), it has been revealed that men in Germany received on average about 50% more statutory pension than women in 2023. This gender pension gap is notably wider in the western federal states where men receive about 66% more than women [1][5].

The district of Bottrop in the Ruhr area holds the title for the highest average pension for men nationwide, with an average monthly pension of 1,686 euros. However, this figure is still lower than the average women's pensions in Brandenburg, Saxony, or Mecklenburg-Vorpommern in the eastern states [6].

On the other end of the spectrum, men in the district of Waldshut in the Black Forest receive the nationwide lowest average pension for men, at 1,201 euros per month. Interestingly, the average pension for men in Waldshut is lower than some average women's pensions in certain eastern states [2].

The disparity in pension amounts across German states and between genders can be attributed to several key factors. Regional disparity plays a significant role, with the gender pension gap being larger in western states compared to eastern states, reflecting historical and economic differences between these regions [1][5].

Work patterns also contribute to the gap. Women more often work part-time, have more frequent and longer career interruptions (largely due to caregiving responsibilities), and are employed more in lower-paid sectors. These factors reduce their pension contributions over a lifetime [1].

Income levels also play a role, with women generally earning less than men, resulting in lower pension entitlements since statutory pensions are tied to lifetime earnings [1][4].

The structure of the pension system in Germany also contributes to the gap. The German state pension is linked to individual employment histories and contributions. Since public pension insurance is compulsory for employees but private pensions are voluntary and vary widely, reliance on the public system makes these work-related differences more prominent [3].

Despite some pension growth for women over the last decade, with women’s pensions increasing by 62% compared to 30% for men, the gap remains substantial [1].

In the east, the employment rate of women is higher compared to the west, a legacy of past GDR times. However, the employment rate of men in the east and west is relatively close, with a minimal gap in pensions [7].

In the west, the average pension for men is higher than the average pension for women in the eastern states. Women in Potsdam receive the highest average monthly pension nationwide, at 1,314 euros, followed by women in the Rhineland-Palatinate Eifel district of Bitburg-Prüm with the lowest average monthly pension of 668 euros [2][7].

Moritz Schumann, deputy CEO of the GDV, stated that the large gap is due to women's part-time work and family reasons [8]. As the retirement age increases and the population ages, addressing this gender pension gap will become increasingly important.

[1] https://www.dw.com/en/germanys-gender-pension-gap-is-widening/a-56925269 [2] https://www.spiegel.de/wirtschaft/soziales/ruhrgebiet-hat-den-hochsten-rueckstand-in-deutschland-a-1294382.html [3] https://www.dw.com/en/germany-pension-gap-between-men-and-women-widening/a-56172241 [4] https://www.spiegel.de/wirtschaft/soziales/deutschland-streicht-gegen-pension-unterschied-an-ehepaaren-a-1291009.html [5] https://www.dw.com/en/germany-pension-gap-between-men-and-women-widening/a-56172241 [6] https://www.spiegel.de/wirtschaft/soziales/ruhrgebiet-hat-den-hochsten-rueckstand-in-deutschland-a-1294382.html [7] https://www.spiegel.de/wirtschaft/soziales/ruhrgebiet-hat-den-hochsten-rueckstand-in-deutschland-a-1294382.html [8] https://www.spiegel.de/wirtschaft/soziales/ruhrgebiet-hat-den-hochsten-rueckstand-in-deutschland-a-1294382.html

1. In the realm of personal-finance, factors such as work patterns, regional disparity, and income levels contribute to the significant gender pension gap in Germany, with men on average receiving higher pensions compared to women.
2. As the business world continues to evolve, addressing the gap between men and women's pensions becomes increasingly important in order to ensure fairness and equity in personal-finance matters, according to Moritz Schumann, deputy CEO of the German Insurance Association (GDV).

Read also: