German women urged to start investing early to avoid retirement gap

A German financial analysis argues that the primary cause of the retirement gap for women is not parental leave, part‑time work or career breaks, but the year they postpone starting to invest. The article explains that delaying a monthly €150 ETF contribution from age 35 to age 40 cuts the investment horizon from 30 to 25 years, resulting in a projected €60,000 shortfall at retirement due to lost compound interest. "Der teuerste Fehler ist nicht die Pause im Lebenslauf, sondern das Jahr, in dem wir wieder nicht anfangen," says finance expert Margarethe Honisch.

While parental leave reduces statutory pension contributions, those gaps can be compensated through retroactive reporting or voluntary payments. By contrast, lost compound growth from delayed investing cannot be recovered, making early and consistent investment the most effective strategy for closing the retirement gap.