Germany's prolonged economic woes are also highlighting a widening gap between retirees with property, savings and private pensions, and older people coping with problems to cover rent, energy and care costs

Oliver Towfigh Nia

Millions of pensioners in Germany are struggling to make ends meet due to fixed incomes, rising costs of housing, utilities, and healthcare, and inadequate retirement savings as the country undergoes a period of economic stagnation.

In Germany, the risk of poverty generally does not refer to extreme poverty as seen in some developing countries, but rather to relative poverty, which is measured in relation to the median income of the country’s total population.

According to the European Union Statistics on Income and Living Conditions (EU-SILC) survey, a person is considered at risk of poverty if their income is less than 60% of the median income of the total population (the at-risk-of-poverty threshold).

According to the final results of EU-SILC 2025, this threshold for a person living alone in Germany was €17,340 net per year (€1,445 per month). According to these figures, 16.1% of Germany's population was at risk of poverty. At 19.5%, the at-risk-of-poverty rate for people aged 65 and older was above this average. A similar picture emerges for people aged 75 and older, whose at-risk-of-poverty rate stood at 19.1%.

Older women at greater risk of poverty than men

In Germany, women in all age groups are at greater risk of poverty than men. According to the final results of EU-SILC 2025, the at-risk-of-poverty rate was 16.7% for women and 15.6% for men. The difference increases with age. In the 65+ age group, women had an at-risk-of-poverty rate of 21.3%, while the rate for men aged 65 and older was 17.3%. Among women aged 75 and older, 21.3% were at risk of poverty, while the rate for men in this age group was 15.8%. Older women are particularly at risk of poverty. They are more likely to have lower lifetime earnings, part-time work histories and career breaks for childcare or family care, reducing pension entitlements.

More than 60% of all female retirees in Germany received pensions below the poverty line last year. For men, the figure is significantly lower, at 27.8%, the government said in response to an inquiry by the opposition The Left Party. The Federal Statistical Office defines the poverty line as follows:

A person lives below the poverty line if their income is less than 60% of the median net income. This currently amounts to €1,446 ($1,670) per month. By contrast, the average monthly pension for men was only €1,415 ($1,634), and for women, just €1,039 ($1,200). Taking all retirees into account -- including those who retired early -- men received an average of €1,531 ($1,769). This is significantly higher than the average for women, which is just €1,025 ($1,184).

Growing number of elderly rely on basic income support

The number of people relying on basic income support in old age has also increased. The Federal Statistical Office reported that more than 738,800 people at or above retirement age received basic income support in old age, at the end of 2025. That was 3.4% higher than a year earlier and 42.5% more than in 2015.

According to the Federal Statistical Office, 19 million people in Germany were aged 65 or older in 2024, making up about 23% of the population. The number has risen sharply from 12 million in 1991, highlighting the demographic strain on Europe’s largest economy.

Sarah Vollath, a lawmaker from The Left party warned of mounting poverty among the elderly in Germany.

“Poverty in old age has long since ceased to be a marginal phenomenon. Pensions have been far too low for years,” the daily Frankfurter Rundschau quoted the social policy expert as saying.

Pointing to the federal government’s planned pension reform, she feared that the situation could worsen. “With this, the government is effectively condemning even more people to poverty in old age,” she added.

Pension system under pressure amid weak economic growth

Germany’s pension system is mainly pay-as-you-go; in other words, current workers fund current retirees. As the population ages and the workforce dwindles, the system faces mounting pressure, especially when economic growth is minimal. Official data indicate Germany’s economy rose just 0.3% in the first quarter of 2026 and 0.2% in the second quarter, after years of slow growth and recession. That is important for pensioners because weak growth restricts wage increases, tax revenue and the government’s ability to expand support for housing, pensions and care.

Germany’s prolonged economic weakness is also highlighting a widening gap between retirees with property, savings and private pensions, and older people facing an uphill battle to cover rent, food, energy and care costs. The pinch comes despite a 4.24% hike in statutory pensions effective July 1, 2026, benefiting around 21 million pensioners across Germany.

For a monthly pension of €1,000 ($1,155), the increase means an extra €42.40 ($48.99). But for low-income seniors, that rise can disappear quickly into higher rents, groceries, electricity bills, heating costs and medical or care-related expenses. The strain can be particularly acute among pensioners who rent, live alone, rely mainly on statutory pensions, or had interrupted work careers because of low-paid employment, part-time work, unemployment, disability or family care. That said, Germany is not facing a uniform pensioner poverty crisis. Many retirees remain financially secure, especially those who own homes, have occupational pensions, investments or long contribution records from stable employment.

Living, energy, care and working in retirement

Housing is one of the biggest pressure points as Germany has a relatively low homeownership rate compared with many European countries, leaving many retirees exposed to rent increases even after leaving work. For pensioners on modest incomes, rent can become the single largest fixed monthly cost. Moving to cheaper accommodation is often difficult because affordable housing is scarce, especially in large cities such as Berlin, Munich, Hamburg, Frankfurt, and Cologne.

Meanwhile, food and energy costs add another layer of pressure. Inflation has eased from the peaks of the energy crisis, but prices remain much higher than before Russia’s invasion of Ukraine and the subsequent energy shock. Germany’s inflation rate was 2.3% in June 2026, while core inflation excluding food and energy hovered at 2.5%. For low-income pensioners, the issue is less the monthly inflation figure than the accumulated rise in prices since 2021 and 2022. Essentials such as food, electricity and heating make up a larger share of their budgets, leaving little room to absorb further hikes.

Germany’s food bank network, Tafel Deutschland, has said the consequences of inflation and the Russia-Ukraine war pushed client numbers up by an average of 50%, while food donations stagnated or declined.

Long-term care is another growing burden on pensioners’ finances. While Germany has mandatory long-term care insurance, it does not cover all costs. Nursing home residents still pay out of pocket for care, accommodation, food, investment costs and training-related expenses. For retirees with low or moderate pensions, care-home fees can quickly exceed monthly income, forcing them to use their savings, rely on relatives or seek social aid.

Solutions to fighting poverty in old age

The German Institute for Economic Research (DIW) has put the issue of poverty in old age back on the agenda by proposing a “boomer solidarity surcharge.” The idea is that high-income retirees should pay an additional levy. This money would then be used to supplement the pensions of people with lower retirement incomes and thus help combat poverty in old age. In addition to the “boomer solidarity surcharge,” there are numerous other ideas on how to help pensioners living in poverty.

For example, the Parity Welfare Association called for a poverty-preventing minimum pension for long-term contributors. It would be financed through taxes. By including all working people in the pension system, the welfare association aims to strengthen the statutory pension once again.

“In the medium and long term, it is important to stabilize the statutory pension again,” said Dr. Martin Brussig of the University of Duisburg-Essen.

The reasoning behind this is that, especially for people with low incomes, the statutory pension is the most important pillar of support in old age. They are often unable to save much. Furthermore, good wages, jobs with social security coverage, and avoiding unemployment are crucial, added Brussig. (AA)

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