Gender pension gap in Germany: women are often even 40% poorer when it comes to retirement income

The gender pension gap refers to the gap between the retirement incomes of women and men. It remains a pressing social problem in Germany. Figures from the Federal Statistical Office showthat women's retirement income in 2023 was still almost a quarter lower than that of men.

Women suffer from particularly low retirement incomes

The gender pension gap in Germany was 27.1 percent in 2023. This means that, on average, women's retirement income was around a quarter lower than that of men. The difference becomes even clearer if you only look at your own pension entitlements and exclude derived entitlements such as survivors' pensions. In this case, the gender pension gap was as high as 39.4 percent.

The reasons for this considerable discrepancy are manifold and deeply rooted in our social structures. One major factor is the difference in labor force participation between women and men. Women are more likely to work part-time and interrupt their employment more often and for longer, especially to raise children or care for relatives. In 2021, for example according to further information from the Federal Statistical Office 47.4 percent of working women aged 15 to 64 have a part-time job, but only 10.6 percent of men of the same age.

These differences in labor force participation have an impact on pension entitlements. The German pension system reflects the employment biographies of those insured. It therefore transfers the inequalities from working life to old-age provision.

Deviations in the new federal states

The situation is somewhat different in the east. For example, the situation in Saxony-Anhalt shows interesting deviations from the overall German picture: Here, the gender pension gap in 2021 was only 15.1 percentthe lowest figure in Germany this year.

The gender pension gap is generally lower in the new federal states than in the old ones. This is partly due to the different employment biographies of women in the east and west. In the former GDR, female labor force participation was higher and part-time work was less common.

An additional package of measures is necessary

Comprehensive measures are needed to reduce the gender pension gap. To this end belong to promoting the employment of women, improving the compatibility of family and career and upgrading typical "women's professions". Greater consideration should also be given to Parenting and care periods in the pension calculation could help to close the gap.

Another aspect is raising awareness of the topic of retirement provision. Women should be informed at an early stage about the impact of their employment decisions on their future pension. At the same time, it is important to involve men more in family work in order to achieve a fairer distribution of paid employment and care work.

Furthermore, according to one article on the Facebook page of the Finanancial services company tecisIt is important that women supplement their statutory pension with additional private pension products as early as possible. According to the financial experts at tecis, individual retirement planning is particularly important for women. Private pension insurance and company pension schemes are two of the main ways to plan for retirement. Alternatively, fund savings plans are also interesting for working women.

Avoiding poverty in old age

Reducing the gender pension gap is not only a question of justice - it is also of great social and economic importance. Adequate pension provision for all genders helps to prevent poverty in old age among women and relieves the burden on social systems in the long term. Reducing the pension gap can also have a positive impact on mental health, as studies suggest.