Over a fourth of individuals aged 45 and above receive a pension below €1,300.
In the heart of Europe, Germany is navigating a significant overhaul of its pension policy, a response to the persistent challenges of low pensions, particularly for those with long insurance histories.
The latest milestone in this journey is the Pensions Stabilization and Generation Capital Act, or "Pensions Package II," approved on May 30, 2024. This reform aims to maintain the pension level at 48% of the average wage until June 30, 2040. This legal guarantee is intended to provide retirees with a more predictable and secure income, addressing the issue of low pensions for long-term insured persons [1].
However, the system still demonstrates limitations. Approximately 61% of pensioners receive less than €1,200 net per month, and about one-third receive under €750 monthly. This disparity disproportionately affects women, who often have lower pension entitlements due to part-time work or career interruptions [1].
To alleviate the pressure on the statutory pension system and enhance long-term retirement security, the government is focusing on measures to expand workplace and private pension schemes [1].
The Left Party and Federal Social Affairs Minister Barbara Steffens' proposals and positions are not explicitly detailed in the available information. However, the ongoing reforms suggest the government is seeking a balance between upholding pension levels legally and exploring supplementary provisions beyond the statutory system [1].
As of July 1, 2025, pensions in Germany will increase by 3.74% across all federal states, reflecting ongoing efforts to keep pace with economic parameters like wage development [2].
In summary, Germany's pension policy is currently focused on stabilising pension payments at a defined ratio to average wages for long-term contributors, addressing low pensions but still facing gaps, especially for vulnerable groups, promoting workplace and private pensions as complementary solutions, and incremental pension increases to adjust for inflation and wage trends [1][2].
While the current reform is a pivotal attempt to secure retirement income in the face of demographic and economic pressures, further concrete proposals from the Left Party or Minister Steffens on changing the pension system, including addressing the specific issue of low pensions for those with at least 45 years of insurance, would require additional detailed information [1][2].
Regional differences in pensions are evident, with an average of €1,729 in the west and €1,527 in the east. On average, men with at least 45 years of insurance receive €1,778, while women receive €1,449 [1].
It's worth noting that hundreds of thousands of Germans retire early at the age of 63, a fact not directly related to the previous paragraphs but included for completeness.
The draft pension law does not specify if it will address regional differences in pensions or changes to the current system where women, despite having a comfortable joint household income, may have a low pension due to staying at home as a partner without their own income.
The government notes that the figures do not fully represent the financial situation of those affected, as they include non-contributory periods such as school, university education, unemployment without unemployment benefit, and part-time work.
Pensioners can expect rising pensions despite the aging of society due to the proposed legislation. Hamburg has the highest average pension after 45 years (€1,787), while Thuringia has the lowest (€1,491) [1].
Dietmar Bartsch of the Left Party has criticised the current pension system, stating that it is insufficient for securing financial sustenance in old age. He has also advocated for all wage earners, not just dependent employees, to contribute to the pension fund [1].
The draft pension law does not address the issue of hundreds of thousands of Germans retiring early at the age of 63.
This article provides an overview of the current state of pension policy in Germany, highlighting the ongoing efforts to address the challenges faced by pensioners with long insurance histories. For more detailed information on the proposals and positions of the Left Party and Federal Social Affairs Minister Barbara Steffens, additional research may be necessary.
The German government is seeking to expand workplace and private pension schemes to alleviate the pressure on the statutory pension system and enhance long-term retirement security [1]. In the business and political sphere, discussions are underway regarding the need for all wage earners, not just dependent employees, to contribute to the pension fund, as suggested by Dietmar Bartsch of the Left Party [1]. Finance plays a crucial role in this, as the government strives to fund these reforms while maintaining economic stability. This holistic approach to pension policy is also a focus of general-news reportage, with updates on the Pensions Stabilization and Generation Capital Act constantly evolving [1].
