In 2023, the average statutory annual gross pension in Germany was 19,138 euros. According to the study, a typical one-person household over 60 has an average annual expenditure of around 28,663 euros – around 9,500 euros more.

The statutory pension only covers around two thirds of the cost of living in Germany. Pensioners have to raise the rest from savings, private provision, support from family or additional work.

Anyone who only relies on the statutory pension will not be able to make ends meet and that is only calculated for an average, non-luxurious lifestyle.

It’s better this way

A look across the borders shows that, purely in terms of altitude, Germany clearly has room for improvement. In Luxembourg, pensioners receive an average of over 34,000 euros per year, in Denmark and Norway just over 30,000 euros. Even Austria and the Netherlands are well above the German level.

This is where purchasing power comes into play. Countries with lower pensions often also have lower costs of living. Conversely, high pensions in expensive countries quickly lose value. In real terms, the 34,000 euros in Luxembourg correspond to a purchasing power of around 23,000 euros.

In Germany, relatively high living costs are combined with low pensions compared to those in Western Europe, which puts many older people under pressure. One cost point stands out here.

Housing eats up your pension.

Older people account for around a third of their expenses Housing and energy. Across Europe, Germany has a very high proportion of older tenants; around 60 percent do not live in their own property. Rising rents therefore have a direct impact on the pension budget. The ownership rate is higher in almost all European countries. In Luxembourg it is over 70 percent of those over 60, and in Norway it is even over 80 percent. In Romania, Poland, Spain and the Czech Republic, the ownership rate is sometimes well over 70 percent.

Only four countries where the pension is really enough

It is not only in Germany that the statutory pension is below the level of expenditure. In only four of the 30 countries surveyed does the average state pension exceed the expenses of older people.

Romania, the Czech Republic, Poland and Spain form the small group of surplus countries. Statistically speaking, the statutory pension can completely finance everyday life there.

In Germany, on the other hand, the gap is significant. It is only larger in some Eastern European countries and wealthy states such as Norway.

In Germany, as in other countries, pensions are no longer planned as full pensions for a long time. However, it works much better elsewhere, for example in Norway.

Axel West Pederson, professor at the Institute for Social Research, explains it this way:

“The reason why poverty in old age is comparatively low in Norway is (…) due to the generous minimum level of pensions (…). At the same time, the system is designed in such a way that the state provides the basis, but the actual standard of living in old age arises from the interaction with company pensions.“

If you want to maintain the same standard of living in old age as when you are working, you have to make additional provisions almost everywhere in Europe. In some countries this is planned, such as in Norway or Luxembourg. In Germany too, private and company pension provision is intended to close the pension gap in old age. However, many employees continue to rely solely on the statutory system. A pension commission set up by the federal government is now supposed to change that.