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German Mothers Face Six-Figure Retirement Hit From Part-Time Work, Verivox Finds

Lost compound growth during early saving years drives most of the damage.

Overview

  • Verivox released a calculation that puts a clear price on a typical decade of part-time work by showing how it slashes private retirement savings.
  • In the example, paying €300 a month into an ETF from age 30 to 67 grows to about €730,000, but cutting payments to €150 between ages 30 and 40 leaves about €529,000.
  • The shortfall arises because smaller early deposits earn less over time, and later catch-up payments cannot rebuild the missed compound gains.
  • Women are most exposed in Germany, where 49% of women work part-time versus 12% of men, and part-time years also reduce statutory pension entitlements.
  • Experts point to scarce all-day childcare and the Ehegattensplitting tax rule as key drivers and urge couples to compensate the caregiving partner to guard against later shortfalls or divorce.