Pension: Study shows why the fear of poverty in old age is growing

According to a recent study, every second person over the age of 60 is concerned about poverty in old age.

At the same time, fewer and fewer people are taking precautions.

Berlin – Poverty in old age is increasing in Germany: This year more pensioners will have to receive basic security in addition to their pension.

This emerges from figures from the Federal Statistical Office, which the left had requested.

In June, more than 628,570 pensioners received the social benefit.

Compared to June 2021, this is an increase of more than 51,000 people.

The social benefit is given to people whose income at retirement age is not sufficient to cover their livelihood.

Among them are more women than men: According to the figures for June, around 354,700 women and almost 273,900 men received the benefit.

In recent years, the number of older people receiving basic security has increased.

Five years ago, the number was 557,526.

Study: Every second person over the age of 60 is concerned about poverty in old age

A recent study shows that many Germans are well aware of the risk of poverty in old age.

According to a survey by the Banking Association, every second person surveyed over the age of 60 is concerned about poverty in old age - two years ago it was still every third person.

"One reason for this is rising inflation," says Henriette Peucker, Vice President of the Banking Association.

Concerns about financial security in old age are also growing among younger people: 38 percent of 18 to 29-year-olds stated that they were afraid of poverty in old age – two years ago, the fear was also lower in this group and was only expressed by 20 percent.

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At the same time, according to the survey, fewer and fewer people are making provisions for old age.

“It is worrying that fewer and fewer people are dealing with the topic of old-age provision.

And that despite being aware of the problems,” says Peucker.

Politicians have recognized the problem, but must now act decisively.

"The further development of the statutory pension with the newly introduced share reserve is a first step," says the deputy boss.

Can the stock pension stabilize the statutory pension?

The stock pension planned by finance minister Christian Lindner (FDP) - a partial capital cover of the statutory pension insurance - should contribute to the long-term stabilization of the pension level and pension contribution rate.

The capital stock required for the start of the capital cover, a so-called share reserve, is now to be built up with debt.

According to the Treasury Department paper, the aim is to use the share reserve to take advantage of the "return opportunities" of the global capital market.

Some European countries have been doing this successfully for decades.

The head of the Federal Association of Small and Medium-Sized Businesses, Markus Jerger, told the German Press Agency: “From 2025, our pension system is threatened with a financial crisis due to the retirement of the baby boomer generation.

By 2040, it will then be mathematically less than two employees who will finance one pensioner.

Even the share pension, which we advocate as an additional pillar of old-age provision, cannot compensate for the structural deficits.”

If the federal government wants to prevent the collapse of statutory pension insurance, it must tackle fundamental reforms.

"These include adjusting the retirement age to 68, more incentives for earning opportunities in old age and including civil servants as contributors to social security."

With material from the dpa

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