East offers higher women's pensions at €357 compared to the West
In Germany, there is a significant difference in average pension levels between the eastern and western regions of the country. However, contrary to popular belief, it is **women in the east who receive lower pensions than their western counterparts**—not the other way around.
According to a report by the Prognos Institute and the German Insurance Association (GDV), the average pension in western Germany is about €1,663 per month, while in the east it is €1,471 per month [1]. This west-east gap has been gradually narrowing since 2018 due to a process of pension equalization, but it still exists.
The pension gap reflects the long-term effects of Germany's division (1949–1990). East Germany (GDR) had a different social security system, and after reunification, pension entitlements were harmonized but with lasting differences. Pensions in Germany are based on lifetime earnings and contributions, and generally, wages (and thus pension contributions) in the west have historically been higher than in the east, leading to higher pension benefits in the west.
Women across Germany receive significantly lower pensions than men, primarily due to differences in lifetime earnings, career interruptions, and part-time work. This gender gap exists in both east and west, but the west-east pension gap is about regions, not genders.
Among men, the pension gap between east and west is minimal. Nationwide, male retirees in the Ruhr area have the highest pensions, with an average of 1,686 euros per month in Bottrop. On average, men in the east receive 1,430 euros in the west and 1,416 euros in the east.
On the other hand, there is a notable difference in average pensions between women in the east and west. Women in the east receive an average of 357 euros less per month in pension than women in the west. The lowest women's pensions can be found in Brandenburg, Saxony, or Mecklenburg-Western Pomerania. The Rhineland-Palatinate Eifel district of Bitburg-Prüm has the lowest average monthly pension for women, at 668 euros.
The west-east pension gap is gradually being addressed through policy efforts to balance pension rights across the country. By 2025, eastern pensions are expected to be about 90–92% of western levels. However, historical factors and differing employment and wage patterns continue to explain why the regional gap persists.
References: [1] Prognos Institute and German Insurance Association (GDV) report, 2021.
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- Despite the gradual closure of the west-east pension gap, it's important to note that women in the east still receive lower pensions compared to their counterparts in the west, with a difference of around €357 per month, as stated in the Prognos Institute and German Insurance Association (GDV) report from 2021.
- Although women's health and wellness are topics of concern across Germany, it's significant to highlight the greater impact of lower pensions on women's financial wellbeing, particularly in the eastern regions of the country.
- In terms of personal finance, bridging the west-east pension gap is vital for women to achieve financial security in their retirement years, as the current disparity in pension income can have long-lasting effects on their health-and-wellness, as well as their overall standard of living.
