Where people in Germany receive the highest pensions

The analysis published this week by Germany's state pensions provider - the Deutsche Rentenversicherung - shows regional and gender disparities in old-age pensions across Germany, as well as how many pensions are paid out to people who've since moved abroad. 

The Rentenatlas 2024 found that men in the German states of North Rhine-Westphalia (NRW) and Saarland receive the highest average gross pensions.

The average gross old-age monthly payout for men with at least 35 years of contributions was €1,923 in NRW and €1,920 in Saarland in 2023, the research found. That is more than €100 above the national average of €1,809 for men.

In contrast, women across Germany earn significantly lower pensions, averaging €1,394 per month gross.

This gender gap contributes to a nationwide average of €1,623 for retirees with similar contributions.

Saarland and NRW also lead the rankings for women’s pensions, pushing these states to the top overall with average pensions of €1,741 and €1,708 respectively.

In Germany, people generally have to pay at least 35 years of contributions in order to receive the Grundrente - or basic pension.

The Rentenversicherung paid out a total of almost 26 million pensions last year. In the previous year it was 25.8 million.

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What's behind the differences in pension payouts?

The report attributes the higher state pensions in NRW and Saarland to the legacy of mining jobs in the region.

"In both federal states, many men used to work in well-paid jobs in the mining industry," says the report.

"The good wages from back then are now reflected in their pensions. This is because pension payments are based on the amount of individual earnings from all the years in which contributions were paid. The higher the earnings subject to contributions, the higher the pension entitlement."

The picture differs across Germany, with the east of the country faring worse. Wages here tend to be lower than in western states. The lowest pensions were recorded in Thuringia, Saxony-Anhalt, and Mecklenburg-Western Pomerania. In these states, as well as in Saxony, Brandenburg, and Berlin-West, the average pension was less than €1,600 per month.

Meanwhile, women typically receive lower pensions than men because of various factors. These include the gender pay gap, which means women generally earn less than men. Women are also more often impacted by career breaks, part-time work, and low-wage work, which affects the overall pension. 

READ ALSO: Why is the gender pay gap so big in German speaking countries?

How many pensions are taken out abroad?

According to the pension insurance provider, 6.6 percent of all pension payments - or 1.7 million - go to people who previously worked in Germany but now live abroad. 

Of these, around 72 percent go to countries in the European Union. Italy leads the way here, with almost 349,000 Italian nationals receiving a pension from the scheme. 

Most German nationals are drawn to Austria with their pensions. The Rentenversicherung pays around 29,000 pensions to German nationals in the neighbouring Alpine country. 

READ ALSO: Can you get your pension contributions back when you leave Germany?

Contribution rate has remained stable

Despite the significant increase in the number of pensions being paid out, the pension contribution rate is lower today than it was before the turn of the millennium.

In 1997 workers (and employers) paid 20.3 percent of their gross salary into the pension pot. Today the rate is 18.6 percent. The pension provider said it has been "able to cope with demographic change in recent years without adjusting the contribution rate".

They attributed the positive development to changes in the labour market fuelled by the significant increase in employment among women, older people and immigration to Germany. 

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