Around 1,400 euros for men and 940 euros for women - this is the average level of pensions in Germany after social and health insurance. How do some other EU countries manage to provide higher incomes to their pensioners?
It is a myth that pensions are too generous in Germany. At the moment (as of 2025/2026) the amount of the state pension in Germany amounts to around 48% of the average gross income. It is important to clarify that this is not a percentage of the last personal salary, but refers to the average income in Germany. Someone who has earned the average income in the country throughout their working life (for 45 years) will ultimately receive 48% of this average income as a pension, the German Pension Insurance Service explains. The pension is gross - i.e. health and medical insurance contributions and taxes are deducted from it.
In other large EU countries such as France, Italy and the Netherlands, these percentages are significantly higher - between 70 and 80 percent of average earnings, respectively.
Although German pensions are below the European average, the reforms that the government in Berlin intends to implement do not portend a higher level. These days, Chancellor Friedrich Merz has sparked heated debate with his remark that, at best, pensions in Germany will only be a certain basic income, to which future generations will have to add income from private pension insurance.
In front of the German public media ARD, the chairwoman of the German Social Democrats Berbel Bass said these days that 1,400 euros for men and 940 euros for women (which is the average level of pensions in Germany after social security contributions are deducted) are too low amounts compared to other European countries.
But why do other countries in Europe manage to provide higher pensions to their citizens? What are the differences in the systems of some of these countries? Austria is constantly cited as an example.
What is it like in Austria
In Austria, the average pension for men amounts to around 2,400 euros, and for women - 1,700 euros. In addition, pensions are paid 14 times a year there. The increases are linked to the level of inflation. The usual retirement age for men is 65 years. And by 2033, that for women will also be gradually raised to 65 years.
The main difference with Germany is that all workers, including civil servants and the self-employed, are obliged to pay pension contributions into a common system. According to data from the German Pension Insurance, this explains why in Austria they can pay out about 30 percent higher amounts than in Germany, explains the website of the public media ZDF.
Added to this is the fact that the pension contribution in Austria is 22.8 percent, which is significantly more than the 18.6 percent in Germany; In addition, the Austrian state contributes more to the pension fund, and the population there is slightly younger than in Germany.
The example of the Netherlands
The Netherlands is also often cited as an example. Workers there pay contributions to a state insurance system that provides a pension based on age and length of service. The state covers any deficits in the pension system.
On the other hand, the company pension system is widespread in the Netherlands. Around 90 percent of workers have access to them. Employers pay on average two-thirds and employees one-third of the contributions. In addition, there are individual pension insurances. The retirement age has since been raised to 67.
The system in Sweden
After reaching a certain age, everyone in Sweden can decide for themselves when to retire. This currently applies to those born in 1963 and later, with the earliest retirement age being 64. This age is linked to life expectancy, so it is likely to rise. In Sweden, everyone pays into a pension scheme – including civil servants and the self-employed.
In Sweden, social security contributions amount to 18.5% of income, as in Germany, but 2.5% of these contributions go towards a so-called "premium pension". These funds are invested in funds that Swedes can choose for themselves.
France: reforms and protests
In France, at the end of 2023, people retired at an average age of 62 years and 9 months. The average pension paid was €1,666 gross per month. In the same year, amid massive protests, a decision was made to gradually raise the retirement age from 62 to 64. However, this increase has since been postponed.
In fact, retirement for many French people started at a later age even before the reform, explains ZDF - and for financial reasons: those who had not paid in long enough to receive a full pension worked longer. However, anyone who reached the age of 67 received a full pension without deductions, regardless of how long they had been insured.
The situation in Great Britain
Great Britain has already raised the retirement age for younger generations - specifically for everyone born after April 5, 1977 - to 68. It is possible to retire even later, and in return receive an increase in the pension.
The state pension is financed by contributions to the so-called National Insurance system. Only those who have paid contributions for at least ten years are entitled to a pension. The full pension, currently around £240 a week, is paid after at least 35 years of insurance. The amount, which is around €1,108 for four weeks, is usually not enough to live comfortably.
Employers are therefore required to contribute to a private pension scheme for their employees. The government is also introducing tax incentives to encourage investment in private pension funds.