Significant increase among women
Pensioners are paying into pension funds for longer and longer periods
11.06.2024, 11:04 a.m.
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The number of years of insurance for people in Germany is increasing: nationwide, pensioners have been paying contributions for an average of 39 years. That is around six years more than in 2003. According to the German Federal Pension Insurance, the reason for this development is quite positive.
New pensioners in Germany can look back on more and more years in which they have paid into the pension fund. “While insured persons had an average of 33.0 years of insurance when they started their old-age pension in 2003, this figure had already risen to 39.3 years by 2023,” said Jens Dirk Wohlfeil, CEO of the German Federal Pension Insurance. He made his comments at the meetings of the self-governing bodies of the pension insurance, the Representatives’ Assembly and the Federal Representatives’ Assembly in Munich on Monday and Tuesday.
The increase is particularly noticeable among women. Here, the number of average years of insurance increased from 26.6 to 37.3 years between 2003 and 2023. In the old federal states, it rose from 23.2 to 35.9 years, and in the eastern states from 41.1 to 42.9 years. For men, there was a nationwide increase from 40.5 years in 2003 to 41.4 years in 2023.
Wohlfeil attributed the increase in years of insurance mainly to the increased participation of West German women in the workforce. Another reason for the increase in years of insurance is the restrictions on early retirement options that have been in place over the past 20 years. The increased recognition of child-rearing periods through the so-called mother’s pension also has an impact on female pensioners. In addition to periods of employment, years of insurance also include periods of child-rearing, receiving social benefits and caring for others.
Wohlfeil said: “Increasing employment participation and longer insurance periods also lead to higher contribution income for the pension insurance and thus contribute to its financial stability.” The board is an eight-member self-governing body of the German Federal Pension Insurance. Wohlfeil represents the employers’ side. He is supported by a co-chairman of the group of insured persons.