More people entering retirement
The number of people entering retirement in 2023 was 953,000, which is around 78,000 or 8.9 per cent higher than in 2022 . This increase is primarily due to demographics, to the extent that the high birth-rate generations are now reaching retirement age, and it is evident across all pension types. For example, the number of pensions for insured persons with an exceptionally long-term insurance record entering into retirement increased by around 6.4 per cent to approximately 279,000. Accounting for 29.3 per cent of all persons entering retirement, this remains the most frequently claimed type of early old-age pension. It can be drawn early without deductions after 45 years of contributions and, in the case of people born in 1959, at the age of 64 years and two months at the earliest.
| Retirement entrants by pension type | 2023 Number | 2022 Number | Change % |
|---|---|---|---|
| Total | 1,534,690 | 1,463,887 | 4.8 |
| Reduced earning capacity pensions | 164,364 | 163,907 | 0.3 |
| Total old-age pensions* | 952,658 | 874,994 | 8.9 |
| of which old-age pensions | |||
| ... for severely disabled persons | 62,210 | 56,287 | 10.5 |
| ... for insured persons with a long-term insurance record | 212,611 | 189,262 | 12.3 |
| ... for insured persons with an exceptionally long-term insurance | 279,134 | 262,434 | 6.4 |
| ... as regular old-age pension | 397,579 | 365,701 | 8.7 |
| Survivors’ pensions | 417,668 | 424,986 | -1.7 |
| * Includes three less frequently occurring pension types: long-term mineworkers’ pensions, unemployment/partial early retirement pensions and pensions for women. | |||
Reduced earning capacity pensions are still on the rise
The average amount of reduced earning capacity pension increased to around 1,001 euros for people entering retirement in 2023. In 2022 it was around 950 euros. In 2013, the average amount of reduced earning capacity pension was 613 euros. Since then it has increased by more than 63 per cent or 388 euros. This is attributable to pension adjustments and benefit improvements in the years 2014, 2017 and 2018, as well as the significant extension of the non-contributory supplementary period.
Higher retirement age
In recent years, the average age of firsttime pension claimants has increased significantly. Back in the year 2000, the average age was just 62.3. In 2023, it had risen to 64.4.
The main reasons for later retirement are the introduction of a higher statutory retirement age and the phase-out of two types of early old-age pensions. In the past, these early old-age pension types, such as the old-age pension for women, the unemployment pension and the partial early retirement pension could be claimed at the age of 60 under some circumstances.
Pension payout rates for pensions already awarded
On average, the payout rates for pensions already awarded were 4.6 per cent higher than 2022 at the end of 2023. The reason for this significant increase is the 4.39 per cent adjustment of the monthly pension amount for one earnings point in western Germany and the 5.86 per cent adjustment of the monthly pension amount for one earnings point in eastern Germany on 1 July 2023.
| Payout rates by pension type | 2023 euros | 2022 euros | Change % |
|---|---|---|---|
| Avg. payout all pension types | 1,007 | 962 | 4.6 |
| of which** | |||
| ... Avg. payout for reduced earning capacity pensions | 978 | 933 | 4.8 |
| ... Avg. payout for all old-age pensions | 1,102 | 1,054 | 4.6 |
| ... of which paid to women | 908 | 863 | 5.2 |
| ... of which paid to men | 1,348 | 1,295 | 4.1 |
| ... Avg. payout for survivors’ pensions | 689 | 664 | 3.8 |
| **After deduction of the pensioners’ health and long-term care insurance contributions. | |||
Insurance periods for women increase again
The number of years of insurance for women has risen markedly in recent years. In 2003, the average insurance period for women was 26.6 years when they started drawing their pension. In 2023 that figure had risen to 37.3 years. One important reason for this development is the rising number of women in employment in western Germany, although the figure for women in employment in eastern Germany is still significantly higher. The phase-out of the option for women to start drawing an old-age pension from the age of 60 is another contributory factor, as is the extension of child-rearing credit periods with the so-called “mothers’ pension”.
Higher average rehabilitation age
The average age of inpatient and outpatient medical rehabilitation benefit recipients has risen since the turn of the millennium. Demographic trends have played an important role in this development.
Number of insured at an all-time high
The number of persons subject to compulsory insurance contributions and not receiving a pension hit a new high of 32.91 million at the end of 2022. This corresponds to an increase of 1.1 per cent versus the previous year.
Source: German Pension Insurance statistics – insured persons in 2022 and 2021.
Further information
Further figures and statistics can be found at www.statistik-rente.de
