Retirement (Altersvorsorge)
Overview of the German pension system.
Why This Matters for Immigrants
You start accumulating pension in Germany later than those who've been working here since age 25. This is a mathematical fact, not a reason to panic:
- Fewer years of contributions to state pension = lower payout
- But: you may have a pension from your country of origin
- And: private savings don't depend on when you started working in Germany
The Rentenniveau (pension level) is 48% in 2026, and the law holds it there until 2031 ("Haltelinie") [1]. It is not a share of your last salary: it is the ratio of a standard pension (45 years of contributions on average earnings) to the average wage, both after social contributions and before tax. For immigrants with 10–20 years of German work history, the pension is proportionally lower. This is not a catastrophe, but it means: private savings are important.
Where to Start
| Priority | Action | Why First |
|---|---|---|
| 1 | Understand what you already have | Pension from country of origin? What about it? |
| 2 | Understand the German system | What you're entitled to automatically |
| 3 | Estimate the gap | How much is missing to target income |
| 4 | Choose instruments | Based on your situation |
Three Levels of the German System
| Level | Name | What It Is |
|---|---|---|
| 1 | State pension (GRV) | Gesetzliche Rentenversicherung — automatic if you work |
| 2 | Company pension (bAV) | Betriebliche Altersvorsorge — depends on employer |
| 3 | Private pension | Riester, Rürup, or your own investments |
Section Topics
- State pension — what you're entitled to, how to check
- Riester-Rente — subsidized pension (critical limitations for non-EU movers)
- Rürup-Rente — basic pension, relevant for self-employed
- Company pension — bAV from employer
- Private savings — Depot and your own investments
- International coordination — EU aggregation, bilateral treaties, contracting states
- Contribution refund — Beitragserstattung for non-EU citizens leaving Germany
- Voluntary contributions — filling gaps to reach 60-month threshold
How Much You Need in Retirement
Standard guideline: 70–80% of pre-retirement income.
| Net before retirement | Target income in retirement | Gap (if GRV = 40%) |
|---|---|---|
| €2,500 | €1,750–2,000 | ~€750/month |
| €3,500 | €2,450–2,800 | ~€1,050/month |
| €5,000 | €3,500–4,000 | ~€1,500/month |
Psychological Moment
Retirement is about trusting the system for 30+ years. After experience with pension systems that didn't work as promised, this is difficult. What's different about the German context:
- GRV (state) — pay-as-you-go, doesn't depend on government "investment strategy"
- ETF/Depot (private) — your property, doesn't depend on political decisions
- bAV — depends on employer, read the terms
Trust is built through understanding the mechanics, not through blind faith.
Sources
- Bundesministerium für Arbeit und Soziales — Rentenpaket 2025 beschlossen (Haltelinie: Rentenniveau 48% until 2031, in force from 2026), 2025. https://www.bmas.de/DE/Service/Presse/Meldungen/2025/rentenpaket-2025-beschlossen.html