According to a new study, pensioners in East Germany are financially more comfortable than in the West. The ratio of housing costs to pension income was particularly favorable in Gera in 2021.
This is the result of a published evaluation by the Prognos Institute. In contrast, regional pension purchasing power was lowest in western Germany and in the south, especially in Bavaria. The client was the General Association of the German Insurance Industry in Berlin.
“The result is clear”
The economists related estimated regional rents and the average level of pensions for the 400 districts and independent cities in Germany for the years 2013 to 2021 and used this to calculate the local purchasing power. “The result is clear. Pensioners live particularly cheaply in East Germany,” write the authors. “Because relatively high pensions meet low living costs.”
For the study, the authors used figures from the pension insurance research data center, which published the evaluation of the amount of pensions at district level for 2021 last fall. In addition, Prognos used data on the asking rents in the relevant years for its calculations, as an indicator of the cost of living. Since 2021, both the cost of living and pensions have risen nationwide due to high inflation.
In Gera in 2021, the average monthly pension purchasing power was 1,437 euros, significantly above the national average of 1,036 euros. Gera is followed by four other East German municipalities in the top five: Chemnitz, Cottbus, Görlitz and the Spree-Neiße district.
The worst communities for pensioners
“In Bavaria the situation is reversed,” says the study. “Purchasing power for pensions is well below average.” According to the authors, the generally above-average cost of living in Bavaria is not compensated for by above-average pension income.
According to Prognos calculations, three of the five municipalities with the lowest pension purchasing power in 2021 were in the Free State: the districts of Berchtesgadener Land and Garmisch-Partenkirchen as well as Regensburg, each with 862 euros per month.
According to the study, the relationship between housing costs and pension levels was most unfavorable nationwide not in a Bavarian municipality, but in the Eifel district of Bitburg-Prüm in Rhineland-Palatinate. The study authors put the monthly pension purchasing power there for 2021 at 856 euros. The list of the most unfavorable municipalities for pensioners is completed by Freiburg im Breisgau in Baden, also with 862 euros per month.
