German women are facing a significant disadvantage when it comes to pension income. In 2023, the average pension for women aged 65 and over was 27% lower than that of men. This disparity is known as the gender pension gap and is primarily attributed to factors such as part-time work, lower-paying jobs, and career interruptions for caregiving purposes.
As a result of these factors, women are more likely to experience poverty in old age. Statistics indicate that 20.8% of women over 65 are at risk of poverty, compared to 15.9% of men in the same age group. The gender pension gap also affects the overall income distribution, as women earn less on average throughout their careers. This gap is particularly evident when considering interdependent pensions, which are often paid to surviving spouses. Excluding these pensions, the gender pension gap widens to 39.4%, with 29% of women receiving payments from deceased partners’ pensions.
To address the issue of gender pay gap, some German firms are implementing initiatives to promote equal pay and opportunities for women. However, systemic changes are still needed to fully bridge the gap and ensure fair retirement incomes for both men and women.
