Eastern women receive greater retirement benefits compared to their counterparts in the West
In a surprising turn of events, a study by the Association of Insurers and the Prognos Institute has revealed that East German women are receiving higher pensions than their counterparts in the West. This trend is in stark contrast to the national average, where a significant gender pension gap persists.
The study attributes this phenomenon to the historically higher employment rate of women in the eastern German states, particularly during the GDR era when female employment rates were very high. This consistent contribution to pension funds has resulted in more substantial pension entitlements for East German women, compared to their West German counterparts where female employment was lower and more interrupted due to traditional family roles.
The gender pension gap in East Germany is significantly smaller compared to the rest of the country, with men receiving 16 percent more pension on average, while women in East Germany receive around 357 euros more than their Western counterparts, with an average pension of 1,218 euros in 2023. In Saxony, the average pension for women is 1,209 euros, which is 29 percent higher than the federal average. Similarly, in Saxony-Anhalt and Thuringia, women receive around 1,196 euros and 1,198 euros respectively, which is about 28 percent more than the federal average.
In the old federal states, many women work as homemakers or part-time, leading to them receiving an average of two-thirds less pension than men. This has resulted in a larger gap between men and women's pensions nationwide, with men receiving 52 percent more pension on average.
The debate on mothers' pensions focuses on the need for equalization to ensure fairness, with some arguing that the current situation represents symbolic politics rather than substantial change. Despite this, average pensions in eastern Germany still tend to be lower overall than in the west, with eastern pensions being about 90-92% of the western level as of 2025.
The German pension system, based on a three-pillar model, may also play a role in these discrepancies. Employer contributions and statutory ceilings differ slightly between East and West, which may indirectly influence pension amounts. Company pension schemes, mandatory if requested by employees, may particularly benefit women who remain in the workforce longer, especially in East Germany where female labor participation is higher.
In conclusion, the higher pensions for women in East Germany relative to West German women result mainly from higher lifetime employment rates and pension reforms encouraging later retirement. East German women's pensions have been relatively higher compared to women in the West when adjusting for these historic employment disparities. However, eastern pensions still lag behind western pensions overall. Nationally, pensions average about €1600 gross monthly, with eastern pensions at about 90% of western levels and women generally receiving less than men, but with a smaller gender pension gap in the East due to these employment dynamics.
- The study by the Association of Insurers and the Prognos Institute also sheds light on the role of science and business in addressing health-and-wellness issues, as the revelation of the trends in East German women's pensions was made possible through rigorous research and data analysis.
- In light of the smaller gender pension gap in East Germany, there is a growing interest in finance and business to explore innovative solutions for women's health and wellness, recognizing the potential economic benefits of addressing these disparities.
- The findings of the study suggest that investments in education and equal employment opportunities in science, health-and-wellness, and business can significantly impact women's financial security and overall well-being, creating a ripple effect of positive outcomes for both individuals and society as a whole.
