You make it sound like Germany doesn’t have poor people. That is most certainly not the case. In fact if you consider percentages, more Germans than Americans live below poverty level.
Which allows you to live in a small Appartement outside the city and still have like 400€.
If you are not an alcoholic or smoke you can live a good live. And. Have free and good health insurance.
Source: my mom is in exactly that situation. Pension is only 600, state ups it to 800. She needs to move to a smaller appointment to live now. But she is now some without kids and stuff. No need for a big two or three room apartment.
I know it is sad for old people to move. ( I see it with my mom)
But in live you grow and later you shrink ( home size, income etc etc) it's normal circle of life.
I bet I will be sad when I need to move out of my three room Appartement.