Old-age poverty is female — what you can do about it now

Almost one in four women over 65 in Germany is affected by old-age poverty. A person living alone is considered poor if she has less than €1,381 net per month at her disposal. These are not abstract numbers, but real women who worked their whole lives, raised children, and provided care work — and still do not have enough in the end.

It does not have to be that way. And it is never too late to change something.

Why old-age poverty is a women’s issue

The causes run deep — and they are structural. For decades, women have had different employment biographies than men: they leave their jobs when children arrive. They work part-time, take on the lion’s share of care work, and later care for parents in need. All of that costs time, energy, and career opportunities — but above all, it leaves one thing in the pension account: gaps.

Men, on the other hand, usually remain in full-time work throughout their working lives. They rarely think about giving up their job for the children. The result: significantly higher pensions and significantly less old-age poverty.

This is not an accusation, but a reality we need to understand in order to change it.

The first step: take stock

Before you invest, rearrange, or change anything at all, there is a much less glamorous task first: look at what you actually have.

Because many women have more assets than they think: old life insurance policies, savings contracts, inheritances, real estate. Money sitting somewhere, bringing almost no return.

A few questions you should ask yourself:

• What insurance policies do I have — and do I still need them?
• Are there subscriptions I have been paying for for years without using them?
• What have I saved over the years — and how is it invested?

This overview is where everything begins. And it costs nothing except a few hours of your time.

ETFs, stocks, savings plans — not as complicated as they sound<

For many women, the word “stocks” immediately triggers an uneasy feeling. What if everything is lost? What if I do it wrong? What if I do not know enough?

The good news: You do not need to be an expert. And you do not need a lot of starting capital. Today, you can buy stocks starting at 20 or 30 euros — through apps and online brokers that are as easy to use as an online shop.

ETFs, exchange-traded funds, are a commonly recommended way to begin. They bundle many stocks in one product, automatically diversify risk, and often track a broad index. A globally diversified ETF savings plan that you pay into monthly with a fixed amount — even 50 euros is enough — is often a sensible first step.

The trick is this: buy, leave it there, and do not keep checking. Because those who trade nervously back and forth lose. Those who stay the course win over the long term.

Women are the better investors — really

It sounds paradoxical, but it is true: studies repeatedly show that women perform better on the stock market than men. The reason? Exactly the trait many see as a weakness: caution.

Women inform themselves more thoroughly before making a decision. And then they let their money work quietly. Men, by contrast, tend to trade more frequently, try to predict market movements, and take risks — which often performs worse in the long term.

The fear of loss that keeps many women from investing is also their greatest advantage once they take the first step.

Children, career, and the guilty conscience

Anyone who combines children and work knows this feeling: being torn. The school trip you did not attend. The cake you did not bake. The question that comes up at some point — was I a good mother?

Interestingly, men rarely ask themselves that question. They may feel wistful about missed time. But the nagging sense of guilt that so many mothers know is a profoundly female phenomenon.

And yet what working mothers show their children is invaluable: that women can be independent, capable, and successful. That both are possible. That you do not have to choose.

And when the children one day say, “You were our best role model,” it was worth it.

Money positivity: the new mindset for women

In our society, money is often either taboo or extreme. Either we stay silent about it, or we see images of luxury that feel unreachable. Neither helps.

What helps: a positive, relaxed relationship with money. A tool instead of a source of fear. Something you can understand, shape, and enjoy.

That also means: spending money is allowed to bring joy. We do not have to save every cent and leave everything as inheritance. We are living longer than ever, and we are allowed to shape that life financially too.

Money positivity means: look instead of looking away. Start small instead of waiting for the perfect moment. And believe that more is possible than you currently think.

Three things you can do now

Whether you are 30, 45, or 60, these three steps will help you put yourself on stronger financial footing:

• Take stock. Pull out the folders and see what you have. Insurance, savings contracts, subscriptions — what still makes sense and what can go?
• Invest regularly. Cancel a subscription you no longer use and put that money into an ETF savings plan each month. Fifty euros is enough to start.
• Change your mindset. Money is not a fear topic. It is a tool — and you can learn to use it. Step by step.

Want more? Glow Up Your Life!

If this topic speaks to you, listen to the current episode “Why old-age poverty is female — and how to take financial responsibility” from Glow Up Your Life. Katja Burkhardt talks openly and on equal footing with Carola Ferstl about old-age poverty, financial education, and why it is truly never too late to take your own finances into your own hands. You can find all episodes in the overview.

Who is Carola Ferstl? Carola Ferstl has been one of Germany’s best-known financial journalists and TV hosts for more than 30 years. She has written several books on money, the stock market, and financial education — many of them specifically for women — and runs a YouTube channel where she explains complex financial topics in a clear, practical way. At 57, with three children and a long career, she knows from personal experience what it feels like to balance work, family, and financial responsibility. She is one of the most distinctive voices when it comes to strengthening women financially — and she does it with a clarity and warmth that is contagious.

You can find the episode on all the current podcast platforms:

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