"Retirement Planning in Europe: The Silent Gap"

40 percent. That's how many Europeans don't put any money aside for retirement, according to the Insurance Europe Pension Survey 2025. Not because they don't want to. Because economic conditions make it hard: another 40% say the economic environment has actively held back their savings plans.

That sounds like a dry statistic. Behind it is an entire generation that simply can't afford retirement savings.

Europe isn't saving (enough)

State pensions alone aren't enough to maintain living standards in retirement in most EU countries. Germany, Austria, the Netherlands: the same pattern everywhere. Public systems are under pressure because populations are aging and fewer workers are paying in.

When you're young, retirement rarely crosses your mind. Understandable. Rent, inflation, student loans, maybe a first car. Retirement planning ends up at the bottom of the priority list. That's exactly what makes the gap so dangerous: it grows quietly, over decades, and only becomes visible when it's too late.

Women receive 24.5% less pension

Beyond the general savings gap, there's a second dimension that often gets overlooked. Women in the EU receive, on average, 24.5 to 25% less pension than men. The EU-wide median sits at 24.9%. The differences between countries are enormous.

The largest gaps:

At the other end:

One striking detail: in Estonia, the median gap is -0.3%. Women there actually receive slightly more pension than men on average. This shows the gap isn't a law of nature. It's the result of labor market and social policy choices.

Structural causes, not individual failures

The reasons behind the pension gap are no secret. None of the causes are surprising on their own, but together they form a system that systematically disadvantages women.

Career interruptions due to care work. Children, elderly parents, household duties: unpaid labor falls disproportionately on women. Every month without pension contributions reduces the future payout.

Part-time work. In Germany, according to Destatis, nearly half of all employed women work part-time. Fewer hours mean less income, fewer pension credits (Rentenpunkte), and less employer-sponsored retirement coverage.

Lower financial confidence. Studies show that women are less likely to feel confident making financial decisions on their own. This leads to more conservative and often suboptimal savings strategies.

The European Insurance and Occupational Pensions Authority (EIOPA) stated clearly in 2026: the pension gap can only be closed by addressing the structural labor market issues. Politically, that tends to happen slowly. Waiting for policy to catch up is not a viable strategy.

What this means for you in Germany

The German pension system rests on three pillars: the state pension (gesetzliche Rentenversicherung), employer-sponsored retirement plans (betriebliche Altersvorsorge, or bAV), and private savings (Riester, Rürup, ETF savings plans, life insurance).

The state pension alone covers about 48% of your last net income. Trend: declining. If you're under 40 today, don't count on that improving.

Employer-sponsored plans (bAV) are often worthwhile, especially when your employer contributes. But only about 54% of employees covered by social insurance have one at all. Part-time workers and those in mini-jobs (Minijobber) frequently fall through the cracks.

Riester and Rürup are complicated, sometimes expensive, and often poorly advised. For many younger people, ETF-based savings plans are the more transparent and affordable alternative.

Time is the most powerful factor

The most important element in retirement planning isn't the return rate. It's time. If you start at 25, putting 100 EUR per month into a broadly diversified ETF savings plan, at an average return of 7% you'll have roughly 264,000 EUR after 40 years. Start at 35 instead, and the same monthly amount gets you about 122,000 EUR. Half the result, for ten years' difference.

For women, this is especially relevant. If you know that part-time phases or parental leave will reduce your state pension, you can actively counterbalance that. Not someday. Now.

50 or 100 EUR a month might feel like not much. But compound interest works quietly and relentlessly. Every euro you set aside today is worth a multiple in retirement.

Not just a women's issue

The pension gap affects everyone. Men who rely solely on the state pension will also be in for a surprise. The 40% of Europeans with no private savings span all genders and age groups.

But the data is clear: women are hit harder, more systematically, and the consequences (old-age poverty, financial dependence) are more severe. Ignoring that means ignoring the reality of millions of people across Europe.

Your first step

Retirement planning doesn't start with the perfect financial product. It starts with knowing where you stand financially. What comes in, what goes out, what's left to save.

That's exactly what WonderFunds is built for. Not to sell you financial products, but to give you an honest overview of your finances. No bank connection, no tracking, no one seeing your data.