Regional Study on the Gender Pension Gap: Men Receive 52 Percent More Pension on Average in Germany
Together with Prognos, GDV has calculated the net pension payments for all German districts for the year 2023. The results reveal significant differences in pension benefits between men and women. The gap is especially wide in the western federal states of Germany.
On average across Germany, men receive about 50 percent more statutory pension than women.
The gap is especially wide in the western federal states, according to a new study by the German Insurance Association (GDV) and the Economic Research Institute Prognos.
"In western Germany, men receive 66 percent more statutory pension than women," says Moritz Schumann, Deputy CEO of GDV. "We cannot speak about equality here yet.’ The difference refers to net pension payments—that is, the monthly statutory pension paid out after deducting health and long-term care insurance contributions, based on the individual's own pension entitlements.
Prognos, together with GDV, calculated the net pension payments for all German districts for the year 2023. The results reveal significant differences in pension benefits between men and women. While women received an average net pension of €936 per month, men received on average €491 more each month. Nevertheless, women’s pensions have increased much faster over the past ten years than those of men: from 2013 to 2023, the average pension for women rose by 62 percent, compared to just 30 percent for men.
This gender pension gap reflects typical differences in the working lives of men and women. Since men still do not share care work equally, women often take on these responsibilities. As a result, they are more likely to work part-time and to interrupt their careers more frequently and for longer periods of time than men. They also tend to work in lower-paid fields and are paid less overall. "This leads to women contributing less to pension systems and retirement savings, ultimately being worse off financially in old age. That’s a significant disadvantage," says Schumann.
Gender Pension Gap in Germany Shows Major Regional Differences
In eastern Germany, the gender pension gap is just 16 percent, much smaller than in the west. This is due to the historically higher labour market participation of women in the eastern German states. The positive note is that the rising employment rate of women nationwide is expected to lead to higher pensions in the long-term. The average net pension payment across Germany (men and women combined) is €1,149. "That alone is not enough for a decent standard of living in old age, not today and certainly not in the future. Demographic change is putting increasing pressure on our pension system. To secure a good life in retirement, we need strong and lifelong reliable supplementary pension systems," says Schumann.
Gender Pension Gap Affects All Pillars of Retirement Provision
The financial disadvantage faced by women affects all areas of old-age security, including occupational pensions, which are closely tied to women’s employment rates, as well as private retirement savings. The study’s authors see an urgent need for action to improve women's retirement incomes.
The insurance industry advocates for strengthening funded pension systems. “We have long been waiting for reforms that increase both the effectiveness and the reach of supplementary retirement provisions,” says Schumann. “In private pensions, we need better return opportunities while maintaining lifelong security, and a simplified incentive system that specifically benefits families and low-income workers.” Already today, the Riester pension child supplement supports families and single parents in saving for retirement.
More Pension, More Independence, Less Financial Worry – Five Recommendations
The study by Prognos and GDV outlines five recommendations to improve retirement savings for women, both individually and at the societal level:
- Macroeconomic Impact: Higher female employment increases individual pension entitlements and strengthens the pension system. A higher employment rate helps stabilize pension levels and reduce contribution rates for everyone.
- Compatibility: Employment and childcare must be easier to combine for parents. This requires expanding childcare options and promoting more equal sharing of care work by fathers.
- Preparing Together: Financial disadvantages from gender pay gaps and traditional role divisions lead to unequal incomes in heterosexual households. A joint approach to pension planning, where household income is equally split for retirement savings, helps close the gap and recognizes unpaid care work as a valuable contribution.
- Taking Your Company Pension with You: Occupational pensions, which are state-supported and often employer-subsidized, are a key pillar, even with small personal contributions. Insurers are advocating for reforms to make occupational pensions more widely accessible and to offer better return potential.
- Start Early – Save Longer: Long-term saving with small contributions benefits from compound interest, leading to higher pensions. Those who start late need to save significantly more to reach similar levels of retirement income.
