Elderly Women Face Significant Risk of Financial Insecurity, Affecting Over 2.1 Million Individuals - Elderly women experience significant risk of impoverishment
Article:
A rising number of women are at risk of old-age poverty in Germany, with over 3.4 million pensioners now affected, according to recent statistics. In 2005, the figure was approximately 2 million.
In an interview with "Der Spiegel," BSW chairwoman Sahra Wagenknecht argued that the pension system in Germany is biased against women. She advocated for the implementation of a pension model similar to the one in Austria, citing the need for a minimum pension of 1,500 euros after 40 years of insurance. In Austria, compulsory contributions are made by nearly all employed individuals, leading to a significantly higher average pension than in Germany.
The issue of pension policy reform has become a major political priority for the new federal government. However, opinions within the ruling black-red coalition have diverged recently. Labour Minister Barbara Bas (SPD) has proposed that self-employed and civil servants should contribute to the statutory pension insurance. This proposal, however, has been met with opposition from representatives of the Union. SPD chairman Lars Klingbeil, who now holds the positions of finance minister and deputy chancellor, has previously advocated for a comprehensive reform of the pension system.
The pension systems in both Germany and Austria face challenges in addressing old-age poverty, especially among women. In Germany, women often have lower retirement savings due to career interruptions. In Austria, there is a lack of confidence among women in the state pension system. Both systems are exploring diversified investment strategies, with Germany showing a increasing interest in Asian markets for better returns.
The Austrian pension system is based on three pillars: public, occupational, and private. Mandatory company pension plans are gaining support, but convincing women and young people to rely solely on state pensions remains a challenge. Germany also has a multi-pillar system, with an emphasis on occupational pensions. Measures to address old-age poverty in Germany include increasing the retirement age and enhancing the Riester pension, a government-subsidized private pension scheme.
Addressing old-age poverty among women requires a comprehensive approach that includes both structural changes and investment strategies. By ensuring sufficient retirement income, the risks associated with old-age poverty can be significantly reduced.
In the discourse about aging and women's health, Sahra Wagenknecht, BSW chairwoman, suggests that the German pension system discriminates against women, and advocates for a model similar to Austria's, prioritizing a minimum pension of 1,500 euros after 40 years of insurance, as science reveals that women in Germany often have lower retirement savings due to career interruptions. To promote health-and-wellness in later life, investment strategies in vocational training for women, particularly in the field of science and health-and-wellness, may prove crucial to addressing this issue.
