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Poverty in old-age in Germany to increase in next 20 years — Study

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The number of people in Germany affected by poverty in old age looks set to increase significantly, with 21.6 per cent of pensioners having less than 905 euros (998 dollars) available per month by 2039, a study published on Thursday has shown.

The study, which was carried out by the German Institute for Economic Research (DIW), was commissioned by the Bertelsmann Foundation.

“Even if the job market grows, we have to expect that there will be a significant increase in old-age poverty in the next 20 years,” said the lead author of the study, Christof Schiller.

People are considered to be in poverty if their monthly net income is 60 per cent lower than the median income.

The study estimates that by 2039, around 12 per cent of pensioners will require additional state support to secure their livelihoods.

The research indicated that the most affected group would be pensioners living in eastern German states, where the percentage of people in need of state support could double over the next 20 years.

Reasons for the stark increase are insecure occupations, a high number of part-time contracts, limited contracts, and mothers in particular taking time away from work.

According to the authors of the study, a pension reform is in dire need.

They recommended the passage into law a form of basic pension that would limit old-age poverty.
FAT/YEE

(Edited by Fatima Sule/Emmanuel Yashim)

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