Social Assistance in Germany by Federal State

Social Assistance in Germany by Federal State

A look at our map initially causes some confusion for many readers. Thuringia and Saxony are the two federal states with the fewest social assistance recipients as a percentage of the total population. This leads some West Germans to ponder deeply, as cherished prejudices are shaken to their foundations. Even Mecklenburg-Vorpommern, generally structurally weak apart from its tourist-driven coastal regions, records fewer social assistance beneficiaries than Hesse. Hamburg and Bremen lead the ranking, with Hamburg presenting an almost cynical situation. Not only does Hamburg rank first in the republic for social assistance, but it also has the highest number of income millionaires in Germany. It stands to reason that Bavaria and Baden-Württemberg rank lower; sufficient jobs and good infrastructure are likely the reasons. Berlin in second place is also not surprising; Germany’s melting pot also attracts many people who cannot (or can no longer) gain a foothold in professional life. But let’s look behind the graphic to see what else these numbers tell us.

Poverty in Old Age as a Topic – The Numbers Prove It 

Destatis (Federal Statistical Office) reports the number of social assistance recipients by age, gender, and federal state for each month of the year. In September 2024, there were 1,253,845 beneficiaries nationwide. Of these, 615,200 were male and 538,645 were female. Why women are in the majority becomes clear from the following figures. Well over half of the beneficiaries, 730,305, were women. Without a supplementary benefit or basic pension, they would fall below the minimum cost of living. It is well known that women, especially in West Germany, receive lower pensions than men. The reasons for this are frequently discussed: care responsibilities that limit professional activity, the gender pay gap, and a significantly higher proportion of part-time work or ‘minijobs’ are the most common reasons.

How Are the Figures Compiled? 

In October 2024, the newspaper “Die Welt“, using Hamburg as an example, analyzed the figures for beneficiaries – which are often presented arbitrarily and without explanation – in the context of ‘refusal to work’. During the reporting period, 198,714 people in Hamburg received ‘Bürgergeld’ (citizen’s income). According to the Employment Agency (Agentur für Arbeit), however, only 137,796 people in this group were of working age. The difference of 60,918 people mostly consisted of children and adolescents up to 15 years old, and people receiving a reduced earning capacity pension below the social assistance level who were entitled to supplementary benefits.

It becomes interesting when looking at the distribution of recipients regarding citizenship. The proportion of Hamburg residents with a foreign passport in September 2024 was 20.7 percent. However, among social benefit beneficiaries, foreign nationals accounted for 49.8 percent, roughly half. The explanation for this lies in the language barrier, which prevents many people from accessing employment, according to the local employment agency at the time.

What is the Forecast Regarding the Development of Social Assistance?

 Between 2010 and 2023, benefits always fluctuated around the 30 percent mark of the Gross Domestic Product (GDP) (Source: BMAS ).

However, the retirement entry of the largest part of the Baby Boomer generation is still pending. Depending on how old-age security turns out for the masses here, the number of basic pension recipients could still rise drastically. Regarding all other factors, such as a possible recession due to US trade policy, or immigration from abroad due to wars or famine catastrophes, no statement can be made as of April 2025.

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