Pension crisis 2025: Why the middle class is hardly reached!

Pension crisis 2025: Why the middle class is hardly reached!

Deutschland - On June 2, 2025, a current analysis of the pension situation in Germany shows that many pensioners live significantly below the required income limit in the middle class. According to the Institute of German Economy (IW), the middle class for singles is a net income of 1,850 to 3,470 euros per month, while households with two people have a lower limit of 2,780 euros. This represents a significant problem, because the average net pension does not reach these values.

The data of the German pension insurance proves that men in the old federal states only receive 1,332 euros and women only 830 euros per month. In the new federal states, it looks better marginally, with 1,416 euros for men and 1,218 euros for women. Some of these amounts are even below the basic security level, whereby the pensioners are most affected in the old federal states.

reasons for low pension claims

The causes of the low pension claims, especially for women, are diverse. Interruptions in employment for child rearing, more frequent part -time work and lower wages are often responsible. These circumstances mean that only a small group of pensioners meet the requirements for income in the middle class; Specifically, these are mostly people with at least 45 years of contributions or a high income, company pension scheme, private pension as well as rental income or capital income.

In addition, pension insurance recommends that pension claims to be completed for completeness and, if necessary, apply for basic security if the income is less than 1,062 euros. These measures are crucial to stabilize the financial situation of those affected.

The three-pillar system of old-age provision

In Germany, the three-pillar system plays a central role in old-age provision, consisting of state regulatory security, company pension scheme and private pension. There are various systems and institutions within these columns that offer different demands and maximum services. However, the legal pension alone is often not sufficient to secure the standard of living in old age. According to current estimates, the pension level is around 48 percent of the average earnings. It is therefore particularly important to diversify your own income and to meet additional pension.

In particular, women should check their pension prospects at an early stage, as they are more often affected by old age. Statistics show that the poverty risk rate of over 65-year-olds in 2022 was 18.1 percent, which is significantly higher compared to the total population of 16.7 percent. This means that many pensioners have to fight with considerable financial difficulties. A significant part of those affected also do not use basic security services, often made of shame or lack of information.

The combination of low pensions, regional differences and the frequent lack of additional sources of income means that many older people in society are exposed to an increased risk of poverty. Scientists and social politicians therefore warn of growing poverty in old age that not only affects people's individual life, but also brings social challenges.

Ruhr24
BPB: Drei-Sillen-System BPB: old-age poverty