How much is the average pension in Germany and how has it changed over the years? Although German pension benefits are among the higher ones in Europe, the real value of pensions doesn’t always keep pace with rising living costs. Currently, the average pension in Germany is about 1604 euros gross, but this amount differs depending on region, length of service, and gender. Pensions in eastern Germany are still lower than in the west, and women receive on average several hundred euros less than men.
Average pension in Germany – how much is it now and how does it differ between regions?
The amount of pension benefits in Germany depends on many factors, but one of the most important issues is the region where the retiree lives. The average pension in Germany currently amounts to about 1620-1640 euros gross monthly, but this value isn’t equal for the entire country. Retirees living in western states receive on average 1663 euros, while in eastern Germany the average benefit amounts to 1471 euros. It’s worth noting, however, that thanks to the process of gradual pension equalization that began in 2018, these differences are constantly decreasing. In 2025, the average pension in eastern states already constitutes about 90-92% of the western level, which represents significant progress toward equal treatment of all retirees regardless of region.
These differences result from historical divisions – for years the eastern part of the country had lower wages, which affected the amount of contributions paid. German authorities systematically raise pensions in eastern states to equalize them with western ones, but despite the passing years, full equality hasn’t been achieved yet. For many people, especially those who worked their entire lives in the East, lower benefits may mean financial difficulties, particularly if they don’t have additional security in the form of private savings or company pensions.
How has the average pension in Germany changed in recent years? Increases and real value of benefits
In theory, German pensions are regularly adjusted, but in practice benefit increases don’t always keep pace with rising living costs. In recent years, retirees could count on increases – in July 2022 benefits rose by 5.35% in western states and 6.12% in eastern ones, and in 2023 by 4.39% and 5.86%, respectively for western and eastern Germany. The next increase planned for July 2025 is to amount to 3.74% for the entire country. Despite these changes, the real value of pensions in relation to average wages in Germany is falling – still in the 70s benefits constituted about 55% of average salary, today it’s below 48%. This means that German retirees who don’t have additional savings or private pension plans must be more careful with expenses, especially with rising prices for rent, energy, and healthcare.
Men vs. women – is the amount of pensions in Germany fair?
The division into East and West is only one of the factors affecting differences in German pensions – another is the gender of retirees. Men receive significantly higher benefits than women, which mainly results from their longer work tenure and higher earnings. The average net pension in Germany for men amounts to about 1346 euros, while women receive on average 903 euros monthly. For people with full 45-year work tenure, this difference amounts to 314 euros – men get on average 1637 euros and women 1323 euros. This mainly results from the fact that women more often worked part-time, had career breaks related to motherhood, and more often took lower-paid jobs. Although the social insurance system in Germany provides additional pension points for raising children, it’s still not enough to equalize differences in benefit amounts.
Does German pension allow for dignified living? Benefit amounts vs. living costs
On paper, German pensions look good, but the real situation of retirees depends on where they live and what living costs they have. How much the average pension in Germany is is one thing, but the question of whether it’s enough to cover expenses is equally important. Living costs in Germany differ depending on region – in large cities like Berlin, Hamburg, or Munich, apartment rent consumes a significant part of the pension, and on top of that come bills for electricity, water, and healthcare. The average pension in Germany amounts to 1604 euros gross, but after deducting taxes and health contributions, many seniors are left with amounts around 1200-1300 euros net. In smaller towns, you can live relatively comfortably on this, especially if someone owns their apartment. For this reason, more and more German retirees are considering moving to cheaper countries like Spain or Portugal, where living costs are lower and the climate milder.
How is pension calculated in Germany? Key principles and point system
The amount of German pension isn’t fixed – it depends on the number of years worked, income level, and the contribution system. Germany uses the so-called point system, where each year of work and income level translate into a specific number of pension points (Rentenpunkte). If someone earns at the national average level, they receive 1 point each year. The current value of one point amounts to 40 euros in Germany. This means that a person who for 35 years accumulated an average of 0.8 points annually can count on a pension of about 1100-1200 euros gross. High earnings allow accumulating more points and thus receiving higher benefits. Additionally, the German pension system provides additional points for raising children, disability, and other factors that can increase future benefits.
Maciej Szewczyk ist IT-Berater, Innovationsmanager und vereidigter deutscher Übersetzer, spezialisiert auf polnisches und deutsches Steuerrecht.
Er sammelte Erfahrungen als Berater in IT-Projekten für viele internationale Unternehmen. Im Jahr 2017 gründete er das Startup taxando GmbH, in dem er die innovative Steuer-App Taxando entwickelte, die die Abgabe der jährlichen Steuererklärung erleichtert. Maciej Szewczyk verbindet technologisches Fachwissen mit fundierten Kenntnissen der Steuervorschriften und ist damit ein Experte auf seinem Gebiet.
Privat ist er glücklicher Ehemann und Vater und lebt mit seiner Familie in Berlin.
