The pension system in Germany can be complex, especially for foreigners. Employees, freelancers, and anyone planning for retirement all face different rules and responsibilities. But you don’t have to figure it out alone.
The German state pension scheme provides valuable resources and services to help you navigate retirement planning.
For personalized assistance, you can also visit a local Deutsche Rentenversicherung office or contact their helpline.
Your Social Security number is used as identification for health insurance (public), pension, long-term care, and unemployment insurance.
You can get this number in different ways, depending on your situation.
You can detailed information on the GRV Website(in German)
Your social security card (Sozialversicherungsausweis) is a very important document which you must keep safe. You will also need it when applying for social benefits e.g unemployment benefits
The state scheme is financed by a payroll tax known as “social security contributions”.
Premiums are deducted by the employer, who normally pays half of the contribution.
Those currently paying into the system are funding the current pensioners.
Self-employed are allowed to contribute to the GRV.
If you have worked and paid contributions in Germany for over 60 months, you will receive a German pension after reaching the official German pensionable age.
In addition to the periods of contributory employment, many other periods are considered, including:
“You should clarify your account at an early stage in order to fill in any gaps such as times spent at school, college or university. Periods of occupational training, pregnancy (incl. Mutterschutz), when you were registered unfit for work or unemployed are also registered. After clarifying your account you will have a gap-free “curriculum vitae” in the German compulsory pension insurance system. The earlier you clarify your account, the more “precise” the results of your pension information will be and this forms the basis for your personal pension plan.”
If you worked in Germany for less than 60 months, you are entitled to a refund of your own contributions.
The company contributions are forfeited.
Early retirement is possible if you are willing to forgo a percentage of your GRV.
The amount of your pension is primarily based on your insured earnings through contributions.
These are converted into pension points. We will credit one pension point to your pension account if you have earned exactly the average income of all insured persons (currently 50,493 EUR) for one year. In addition, pension points can also be credited for certain periods in which no contributions were made (e.g., for vocational school education), or contributions were paid by the state, the employment agency, health insurance, or other institutions (e.g., for military or voluntary service, child-rearing, unemployment, and illness).
To calculate the amount of the pension, all pension points are added up and multiplied by the so-called current pension value. The current pension value is currently 39.32 EUR. (2025)
This means that one pension point currently corresponds to a monthly pension of 39.32 EUR.
We recommend that you complete your insurance account as early as possible.
Only with a fully clarified insurance account can they consider all relevant insurance periods when calculating the pensions listed in your pension information. See information above about adding additional periods.
In addition to the German state pension scheme (GRV), many employers offer voluntary company pension schemes (betriebliche Altersvorsorge) to enhance your retirement savings.
Employer Contributions: If your company provides a pension scheme, they typically contribute a portion of your savings, helping to grow your retirement fund.
Types of Schemes: There are five different company pension options available:
Tax Benefits: Contributions to these schemes are tax-free up to a specific annual limit, providing immediate financial advantages.
Check with your employer to see if they offer a pension scheme and how it is structured. This additional support can significantly boost your retirement income.
Private pension schemes in Germany offer an additional way to save for retirement, providing flexibility and tailored solutions for different individual needs. These schemes are entirely privately funded and managed by the individual, making them independent of employer contributions or the state pension system.
In addition to Riester and Rürup plans, many private pension providers offer a variety of options, including life insurance-based savings plans, investment-based pensions, and hybrid models. Choosing the right provider and scheme depends on your income, financial goals, and retirement needs.
A financial advisor with expertise in German pension products can help you navigate the options, ensuring you select a plan that aligns with your circumstances and maximizes potential benefits.
| Social security card | der sozialversicherungsausweis |
| Pension scheme | die Rentenversicherung / die Altersvorsorge |
| Statutory pension scheme | die gesetzliche Rentenversicherung |
| Private pension scheme | die private Rentenversicherung |
| Pensioner | der Rentner / die Rentnerin |
| Direct Grant | die Direktzusage |
| Support Fund | die Unterstützungskasse |
| Pension Company | die Pensionskasse |
| Direct Insurance | die Direktversicherung |
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