East offers higher women's pension benefits compared to the West, with a difference of € 357.
In Germany, the gender pension gap remains a significant issue, with women in certain districts facing lower average pensions compared to their male counterparts. According to a recent calculation by the Prognos Institute and the German Insurance Association (GDV), women in the Eifel district of Bitburg-Prüm in Rhineland-Palatinate have the lowest average monthly pension at 668 euros, while men in the Bottrop district of the Ruhr area have the highest average pension nationwide, at 1,686 euros per month.
The gender pension gap is influenced by several factors, including work-life balance, career interruptions, lower lifetime earnings, and the structure of the pension system. Women are more likely to have interrupted careers due to childcare or caregiving responsibilities, which affects their pension contributions over their lifetimes. Additionally, women generally earn less than men, partly due to the gender pay gap and often being employed in lower-paying sectors.
In the case of Germany, the pension system, while generally equitable, can still perpetuate existing financial inequalities if not carefully managed. For instance, the internal division of pension entitlements upon divorce aims to ensure fair distribution but may not fully address the root causes of these inequalities.
Regional variations between western and eastern Germany also play a role in the gender pension gap. Historically, eastern Germany faced challenges in economic development post-reunification, which could influence employment opportunities and earnings, potentially affecting pension contributions and entitlements. However, specific data on how these factors impact the gender pension gap between western and eastern states is not detailed in the provided sources.
Despite these challenges, women in the eastern German states have historically had a higher employment rate. The average monthly pension for women in these states is more than 1,100 euros, which is higher than in western German states, where the average is less than 1,000 euros. Women in Potsdam have the highest average monthly pension nationwide, at 1,314 euros.
Addressing the gender pension gap requires policies that promote equitable employment opportunities, flexible retirement options, and education regarding pension planning. Initiatives like enhancing childcare support and promoting workforce participation among women could help mitigate these disparities across both regions.
Moritz Schumann, deputy CEO of the GDV, has stated that the large gap in pensions is due to many women in the old federal states taking longer career breaks due to family reasons. This results in women being financially worse off in old age than men in the old states. In addition, women in the old federal states often worked part-time after their children grew up, which leads to them paying less into pension funds and retirement savings.
Despite the lower average pension for women in western Germany, the difference between western and eastern German states among men is minimal: In the west, it is 1,430 euros, in the east 1,416 euros. This is less than the average women's pensions in Brandenburg, Saxony, or Mecklenburg-Western Pomerania. Men in the old states receive an average pension that is two-thirds higher than women.
The gender pension gap is a complex issue that requires careful consideration and targeted policies to address the root causes and promote equitable pension outcomes for all.
- The gender pension gap is not solely a problem of personal-finance management but is influenced by other factors such as work-life balance, career interruptions, and the structure of the pension system.
- To address the gender pension gap, it's essential to implement policies that focus on promoting equitable employment opportunities, business practices, and education about pension planning, not just personal-finance strategies.
