Retirement in the East: Fewer Homeownerships and Lower Incomes

In the eastern federal states, retirees have lower incomes and are less likely to own their own homes than in the west. However, the median household income differs by only 80 euros, according to the Federal Statistical Office. Last year, the range stretched from 2,270 euros in the east to 2,350 euros in the west.

This figure describes the median income of households consisting exclusively of retirees or pensioners aged 65 and older. Half of the households have lower incomes, while the other half have higher ones.

Pensions Are Important

According to the data, the largest portion of income—93 percent—comes from pensions. In the east, these benefits accounted for an average of 96 percent of household income, while in the west they accounted for 92 percent. Additional income from rental properties or investment income is added to this. Older adults earn only about 1 percent of their income from their own gainful employment.

A significant difference lies in housing situations: In the West, a majority—61 percent—of retirees live in their own homes, and only 39 percent have to pay rent. In the east, the ratio is nearly the reverse, with 56 percent of retirees renting. These individuals must also cover their rent from their income.

Increased Risk of Poverty for the Elderly

At the same time, the relative risk of poverty in retirement remained high in Germany. According to the data, 18.9 percent of people aged 65 and older who were retired were at risk of poverty. Among the general population, the rate was most recently 16.1 percent. According to the EU definition, a person is considered at risk of poverty if their income is less than 60 percent of the median income of the total population.