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Replacement-rate gap (Rentenlücke)

Level 2 · Foundations
German termRentenlücke
Deep divesPrivate Savings

A Rentenlücke (retirement-income gap) is the part of planned retirement spending not covered by reliable retirement income. Calculate it in euros before converting it to a percentage. Use the same tax basis, price date, household scope, and monthly or annual period for every input; otherwise the apparent gap is a unit error.

The core calculation

net retirement spending − reliable net retirement income = retirement-income gap

Reliable income can include expected statutory, occupational, and foreign pensions after estimated deductions. Portfolio withdrawals are usually the funding response to the gap, not reliable income assumed before the plan is tested.

Worked example

A household estimates retirement spending of €3,100 per month in today's purchasing power.

ItemNet monthly amount
Planned spending€3,100
German statutory pensions−€1,650
Foreign pension−€350
Occupational pension−€250
Monthly gap€850

The annual gap is €850 × 12 = €10,200 in today's euros. If the household compared today's spending with future nominal pension amounts, inflation would distort the result.

Stress-test the number

VariableUseful alternative
HousingRent continues versus mortgage repaid
Health and careNormal costs versus higher care spending
Claiming ageStandard age versus earlier or later claim
LongevityBase horizon versus longer life
Survivor situationTwo-person versus one-person household
Tax and social chargesGross statements converted to estimated net

A gap is not evidence that one product is necessary. It is a planning output. Possible responses include later retirement, different spending, higher saving, more work income, occupational provision, or private provision; each has different trade-offs.

Check yourself

Planned net spending is €3,100 monthly and reliable net retirement income is €2,250. What is the monthly gap?

A monthly gap is €850. What is the annual gap?

Which comparison avoids an inflation unit error?

What does a calculated pension gap prove?

Sources

  1. Deutsche Rentenversicherung — Renteninformation as a cross-pillar planning input, https://www.deutsche-rentenversicherung.de/DRV/DE/Ueber-uns-und-Presse/Presse/Meldungen/2025/250224-renteninformation-hilft-bei-altersvorsorge.html (2025)
  2. Bundesministerium für Arbeit und Soziales — Cross-pillar retirement information research, https://www.bmas.de/DE/Service/Publikationen/Forschungsberichte/fb527-konzeptionelle-grundlagen-fuer-saeulenuebergreifende-altersvorsorgeinformation.html (accessed 2026)