Retirement Planning in Germany for Expats

Start with the provision you already have

A retirement plan starts with your existing pension rights, savings, expected spending and the time available. For an international career, keep records from every country in which you have worked. The right comparison uses your circumstances, rather than a fixed product order for all expats.

Understand your German statutory pension

Employees are generally covered by statutory pension insurance, subject to applicable exceptions. The contribution ceiling limits the income on which contributions are charged; earning above it does not by itself end compulsory pension insurance.

The regular old-age pension generally requires a five-year qualifying period. Under applicable EU rules or social security agreements, qualifying periods from other countries may also be relevant. This does not mean Germany pays a pension for every year worked abroad. Ask the responsible pension institution to assess your record. DRV explains the aggregation of insurance periods.

What does the 48% pension level mean?

Rentenniveau is a standardised comparison between a model pension and average earnings after specified social contributions and before income tax. It is not a promise that you will receive 48% of your own previous net pay. Your contribution record and retirement circumstances determine your pension. DRV explains the pension-level measure.

A clearly labelled gross example

The pension formula uses pension points, the access factor, the pension-type factor and the current pension value. For an illustrative regular old-age pension with both factors equal to 1 and exactly 35 pension points:

Source: DRV: pension adjustment from July 2026. Use your own Renteninformation or Rentenauskunft as the starting point for an individual discussion.

Estimate a retirement budget consistently

List the spending you expect in retirement, including housing, health cover and personal priorities. Then compare that budget with the income and savings available to support it.

Use a consistent basis: gross or net, and today’s purchasing power or future nominal amounts. Taxes, health and care contributions, inflation, investment risk and the length of retirement can affect the result. Do not compare a projected future gross pension directly with today’s net spending.

The retirement planning checklist explains what information to prepare. The previous automatic calculator is currently unavailable.

Compare the available retirement options

Private pension insurance

Review contributions, investment choices, any guarantees, payout options and all policy costs. Check the financial effect of changing contributions, stopping payments or ending the policy. A private pension is not automatically the best first product for every expat.

Basisrente / Rürup

Basisrente is designed for retirement income and has restrictions on access to the capital. Possible tax treatment needs to be weighed against those restrictions and the actual costs. Tax deductibility alone does not establish suitability. See the relevant conditions in § 10 EStG.

Workplace pensions / bAV

Review the employer’s actual offer, funding, costs, benefits and options when changing jobs. Under § 1a(1a) BetrAVG, the 15% employer subsidy for salary conversion through a Pensionsfonds, Pensionskasse or direct insurance applies to the extent that the employer saves social security contributions. Applicable collective arrangements also need checking. Read § 1a BetrAVG.

Compare contributions and later benefits on a consistent basis, including the relevant tax and social contribution treatment. Neither a subsidy nor salary conversion by itself proves that the arrangement is suitable.

Investment accounts / depots

Investments can be considered alongside pension products. Compare access to the money, diversification, costs and investment risk. Values can fall as well as rise, and there is no guaranteed return from an ordinary investment portfolio.

Existing Riester or other arrangements

Include existing contracts in the review before making changes. Eligibility, subsidies, costs, access and potential consequences of moving abroad need individual assessment. Do not cancel an existing arrangement solely because a general article ranks another product first.

If you may leave Germany

Keeping an existing contract, making further contributions, moving an account and receiving a payment abroad are different questions. Ask the provider about your intended destination and obtain appropriate advice on cross-border tax issues.

Neither insurance policies nor investment accounts are universally portable without restrictions. Citizenship, residence, provider rules and the contract can matter. A statutory pension refund is also subject to specific conditions; it is not an automatic consequence of spending fewer than five years in Germany.

What to prepare for a consultation

• Your latest pension information and records of overseas provision.
• Employer pension information and existing private contracts.
• Your intended saving budget, emergency reserves and need for flexibility.
• Your retirement goals and any plans to change country.

Sven advises in English on private pension insurance, Basisrente/Rürup, workplace pensions and investment accounts. Consultations are available in Berlin and online across Germany.

Advice is free of charge. For insurance arranged through Sven, insurers pay commission. Product and investment costs still apply and should be discussed with the remuneration relevant to the proposal.

Book a free retirement consultation

By Sven Chalupa. Content reviewed: 29 September 2026. General information; individual insurance, investment and tax circumstances require separate assessment.