Germany's 'sad record': More people poorer than ever since 2020

Germany is facing a "crisis-like situation" as its poverty rate climbs to its highest point in four years, impacting 13.3 million people. The Parity Social Welfare Association reported that 16.1% of the population is now living in poverty, an increase of 0.6 percentage points from the previous year.

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The situation resembles a crisis.

Joachim Rock, the association's executive director, expressed deep concern over the rising trend, noting it marks the second consecutive year of significant increases. He warned the federal government that planned cuts to social benefits could exacerbate the crisis. The association defines poverty as having less than 60% of the median income, a threshold that recently stood at a net of 1,446 euros per month for single individuals and 3,036 euros for a family of four.

Disparities in poverty rates are stark across Germany. Wealthier states like Bavaria and Baden-Württemberg report the lowest rates, at 12.6% and 13.2% respectively, due to their strong economic structures. In contrast, the states of Bremen (27.5%), Saxony-Anhalt (21.3%), Hamburg (18.9%), and Berlin (18.7%) show the highest proportions of people affected.

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Additional savings would further worsen the crisis.

Elderly individuals are increasingly at risk, with nearly one in five people over 65 facing poverty or its threat. Other vulnerable groups include single individuals (30.3% at risk), single parents (28.9%), and those with lower educational attainment (29.1%). The association highlights that poverty is growing most in areas with structural disadvantages, such as low education levels or limited access to the job market.

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Age threatens to become a poverty trap.