More and more pensioners in Germany are reliant on basic security, which clearly indicates the growing challenges posed by elderly poverty. Despite a planned pension increase on July 1, 2025, when the current pension value will rise to 40.79 euros and the security level before taxes will be set at 48 percent, this seems insufficient to prevent the financial distress of many older individuals.
Increasing Number of Basic Security Recipients
The number of pensioners with very low incomes remains high: In December 2024, nearly 740,000 people received basic security benefits – an increase of about 7.1 percent compared to the previous month. This shows a growing dependence on state support despite the overall stable financial situation of the statutory pension insurance.
Impacts on Social Security
This development has significant repercussions for social security and the economic well-being of older people in Germany. For private investors and savers, this means, among other things:
- Increased Importance of Private Retirement Savings: The statutory pension alone is insufficient for many, making private savings more critical.
- Risk of Growing Elderly Poverty: Investments should also consider how political measures to combat elderly poverty are evolving.
- Market Opportunities in Care and Senior Products: As an increasing number of older individuals require financial assistance or nursing services.
Overall, the rising number of basic security recipients among pensioners highlights a challenge for the German social security system and a need for action regarding private savings strategies.