Old-age poverty is affecting more and more people in Germany. What exactly old-age poverty is, how it develops and how you can prevent it: Learn more!
Old-age poverty - What is it?
According to a study by Statista.de, 19.7 % of the German population were affected by "poverty or social exclusion"(old-age poverty) in 2016. The under-25s form the largest risk group, closely followed by people of retirement age. Adolescents and young adults often live below the poverty line while in training or studying, but this usually changes after they have completed these measures. Pensioners, on the other hand, have very little chance of escaping the poverty trap under normal circumstances and without outside help.
In order to be able to define what old-age poverty is, we first look at the common definition of poverty. The poverty line is usually calculated in two ways.
Determining the poverty line according to the average income of the population
If one takes the statistical net income of the entire German population and divides this into two halves, the middle, i.e. the average income, forms the border between rich and poor. The half above the average is considered rich and the half below the average is considered poor. Assuming an income of 60% of the average net income, this is where the poverty line would be.
Determining the poverty line with the help of the statutory basic income support.
The current unemployment benefit II rate is used and all those who have a monthly income below this rate are considered poor. A reasonable rent must be deducted, as well as social security contributions and taxes. The remaining amount should at least correspond to the standard Harz IV rate. However, these two calculations only focus on the purely financial aspects of poverty. One can survive with the corresponding money, but social and cultural factors and other expenses are not taken into account. However, since it is inhumane to be able to only survive instead of really live in the long run, the above-mentioned expenses should also be included. The same applies, for example, to necessary tickets, possible holidays or the purchase of clothes and shoes. Likewise, a person should have the opportunity to participate in the cultural life of their community.
These are:
- The opportunity to have a hot meal at least every other day.
- The possibility to meet with friends or colleagues in order to maintain social contacts.
However, all these factors are not included in the calculations, which is why the number of people really affected by old-age poverty is much higher.
Who is affected by old-age poverty?
Old-age poverty affects people who are financially below the income average in Germany and have to do without certain social and cultural offerings. According to Statista.de, the risk of poverty in old age is continuously increasing. It is also noticeable that less qualified people have a much higher risk of slipping into old-age poverty than educated people and academics.
In 2017, more than 6 million people in Germany were below the poverty line at retirement age. The proportion of women and men is roughly the same. It is striking that the majority of men living below the poverty line are former self-employed.
Old-age poverty among women is mostly due to the standard of living at that time. Women always cut back on their work to enable their husbands to advance in their careers and to take care of the children. These women were already dependent on their husband's salary at a young age. This fact has not changed with increasing age, because pensioners today are predominantly dependent on their husbands' pensions.
What percentage of people are affected by old-age poverty?
The aforementioned 6 million people affected by old-age poverty make up more than 7% of the German population, whereby the number of unreported cases is much higher. This percentage only takes into account the financial situation. However, integration into society or other private interests or liabilities are completely disregarded.
While statistically speaking, global poverty has been successfully combated over the past decades, the proportion of people in Germany who are specifically affected by poverty among the elderly is continuously increasing.
At what point does old-age poverty apply?
Social life with run into the subsistence level.
People who cannot afford regular hot meals, who cannot participate in cultural life and who have to do without other things that seem normal to us usually live below the poverty line. Especially for people in old age, this can have devastating consequences, for example when needed medicines or utensils like
- A walker,
- A wheelchair,
- or even simple things such as thrombosis stockings or orthopaedic inserts
cannot be paid for.
Conclusion
Statistically, the proportion of people living below the poverty line is continuously increasing. Women and former self-employed people are particularly at risk of slipping into poverty.
This development must be counteracted with appropriate measures so that future generations also have the chance of an adequate and dignified life in retirement.
