In which case the pension will be reduced if you move to the East as a pensioner

Pensioners from the West who want to spend their retirement in a place of residence in East Germany fear for their pension. This is sometimes justified.

Berlin – The children are out of the house, the desire or the need for a move to one of the "new" federal states is concrete: For many pensioners in Germany, this is a realistic scenario. A lot of bureaucracy is involved when a move has to be arranged – which affects the GEZ, among others. And there is one question that many people who are going to retire or are already retired ask themselves: Do you get a lower pension as a pensioner from the old federal states because the pension value is known to be lower in East Germany than in West Germany? Our overview enlightens consumers.

Moving to East Germany: Pensioners wonder if the pension will be cut

First of all, the good news: By 2025, pensioners in East and West should receive the same pension – at least that is the declared goal of politics. And the road was long: Originally, the level of pensions in the East was just under 40 percent compared to the West level – but it has now risen to over 97 percent. However, this still means a difference in the average receipt of the pension, which is expressed in figures as follows: On average, East German pensioners receive 1567 euros, East German women 1563 euros. In comparison, West pensioners receive 1875 euros, West pensioners 1617 euros. So do you have to accept an average loss of just under 300 euros when you move to Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt, Thuringia or Brandenburg as a pensioner?

Financial losses for certain pensioners after moving from West to East

Whether the old-age pension is calculated according to the value of East or West does not depend on the place of residence. So only a move does not change the pension calculation. The decisive factor is where the pension rights were acquired as a pensioner. There is, so to speak, an "Eastern working time" and "West working time". It becomes more complicated if you have worked as an employee in both areas of the FRG and the former GDR – then those affected have acquired some pay points in the West and some pay points in the East: "Anyone who has earned exactly the average earnings of all pensioners in a calendar year and has paid contributions to the pension fund accordingly will be credited with one earnings point (EP). The number of EPs can be seen from the pension notice," it says on ihre-vorsorge.de.

Moving in old age: Will the pension be reduced if you move to the East as a pensioner? It depends. © photothek and imagebroker / Imago

The situation is different with the survivor's pension. Which widow's pension you receive in principle depends on the retirement pension of the deceased or on his or her disability pension. It does not matter whether you live as a survivor in the East or West. Now comes the "but" for pensioners: Because when other incomes are credited to the survivor's pension, slightly higher allowances apply in the West than in the East. "The bottom line is that widows and widowers living in the West can keep a little more of their additional income, which is credited to the pension. Whether the East or the West allowance is used as a basis depends on where the persons concerned live," writes ihre-vorsorge.de. In other words, if you move from west to east, you have to expect a lower allowance in the five new federal states.

Pensioners also have to accept differences in child-rearing periods

Those who, such as housewives, who usually have a small pension, are dependent on the earnings points from child-rearing periods, also have to pay attention to a few things. For children born before 1992, there have been up to 2.5 pay points for almost nine years. However, the pay points from East and West have a different value. The decisive factor here is the place of residence of the parent raising the child – and not where the children were born. How pensioners in East and West benefit financially from the maternity pension:

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By the way, in keeping with the topic, it is also interesting for pensioners: hardship fund for GDR supplementary pensions – how those affected can now get the money.