Millions of workers go into low pensions

If you’ve paid into your pension fund for decades, your pension should be adequate – or so many people would hope. But the reality is often different.

Millions of people in Germany are headed for low pensions despite decades of contribution payments. Around 6.91 million full-time workers subject to social security contributions would only receive a pension of up to 1,300 euros with their current earnings after 45 years with constant, matched contribution payments. This is shown by the government’s answer to a question from a member of the Bundestag and founder of the BSW party, Sahra Wagenknecht. It was made available to the German Press Agency in Berlin.

However, the Federal Ministry of Labor draws attention to the fact that the assumption given in the question is unrealistic – namely that the wage ratio remains unchanged over the entire period of employment.

The regional differences are high. After a full-time working life, many people, especially in eastern Germany, are threatened with a pension of less than 1,300 euros. Across the country, almost one in three full-time workers would be affected – in the east almost one in two.

Since 2012, the normal retirement age has gradually increased from 65 to 67 years. If you want to receive an old age pension for people who have been insured for a long time, you need 35 years of contributions; . Members of certain age groups can retire without deductions before their 67th birthday if they have paid in for 35 years. For everyone born in 1964 or later, the retirement age is 67, even after 35 years of contributions. In theory, you can retire earlier without deductions after an insurance period of 45 years.

According to the government’s response, after 40 years of insurance, around 9.3 million people will remain under 1,300 euros in pension if they have always earned the same as they do today.

Based on the figures, Wagenknecht indirectly attacks Labor Minister Hubertus Heil (SPD), who is responsible for pensions. “Since 1998, the SPD has provided the ministers responsible for pension policy for more than 20 years,” Wagenknecht told dpa. “As a result, every third full-time worker expects a pension of less than 1,300 euros.” Wagenknecht referred to a campaign promise made by the Chancellor’s candidate at the time, Olaf Scholz, which the SPD politician had made central to the 2021 federal election campaign. Scholz had promised more respect – and then became Chancellor.

Wagenknecht said in relation to pensions: “This is a disrespectful statement towards the majority who work hard in the country.” It’s time for the Social Democrats to lose responsibility for the statutory pension after the federal election, said Wagenknecht, “so they can no longer run it down.”

Wagenknecht promised that the alliance named after her would create a pension insurance like in Austria, to which everyone who works – including politicians – paid. In Austria, pensions for those with long-term insurance are around 800 euros higher per month on average than in Germany.