If you work in Germany, your employer will automatically pay part of your gross salary to the pension insurance scheme. Furthermore, your employer makes a separate contribution to the pension insurance scheme for you, and the state is also providing tax subsidies. The resulted funds are paid to the people who are currently in retirement. That means, when you later become a retiree, your pension will be paid by the younger generation. This arrangement is called the apportionment procedure ("Umlageverfahren").
Retiring in Germany
How much pension can I collect?
People who stop working because of their age are called retirees. Many are worried that they will not have enough money as they go into retirement. Poverty among pensioners is, in fact, a growing problem in Germany, in particular, for those who did not earn much during their working years. It is, therefore, all the more essential to deal with the issue of pension early on and before reaching retirement age. Here, we explain how the statutory pension system works in Germany and what other pension options there are.
What do I need to know?
How does the statutory pension work?
Who contributes to the statutory pension insurance?
Am I entitled to a pension in Germany?
Where and how can I apply for a pension?
What is the pension insurance number ("Rentenversicherungsnummer")?
Are the periods that I have worked abroad also calculated?
Can I work while receiving a pension?
What type of health insurance can I have as a pensioner?
Do I have to retire when I reach the age of retirement?
How is the amount of my pension calculated?
How do I know how much pension I will receive from the statutory pension insurance later?
What if I do not receive a pension or my pension is too low to live on?
Can I obtain a permanent residence permit ("Niederlassungserlaubnis") as a pensioner?
What can I do if I am not capable of working before retirement age?
What types of pension provision exist in Germany?
Be cautious of banks or insurance agents who try to sell you a pension plan. Before making any decisions, seek advice from the Consumer Protection Center. Keep in mind that not every pension plan makes sense for every person.