Pension

Homepage of the Deutsche Rentenversicherung

Pensions in Germany

The German state pension scheme provides valuable resources and services to help you navigate retirement planning.

Foreign Language Support: Detailed information is available on their homepage for foreign languages.
Comprehensive German Resources: For those who understand German, their German site offers even more extensive details.
Online Services: To access their online services, ensure your residence card is activated for online use. This activation can usually be done at your local residents’ office (Bürgeramt).

For personalized assistance, you can also visit a local Deutsche Rentenversicherung office or contact their helpline.

How to apply for a Social Security number?

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.

Public Health Insurance – You receive your number automatically when you first sign-up for public health insurance in Germany. If you are on private health insurance, you need to request it manually at your local Rentenversicherung office.
Employer – your employer might offer to apply for a social security number for you through their payroll system
The German Pension Office – You can personally contact the Deutsche Rentenversicherung, either online or by visiting their offices
Your Insurance Broker – As your broker for assistance

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

Statutory Pension / die gesetzliche Rentenversicherung (GRV)

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:

Child-rearing (until three years of age)
Child raising period (up until 10 years of age)
Schooling and university after the age of 17
Training periods
Times of illness and unemployment (Please register with the Arbeitsagentur if you are unemployed or looking for work as these will count towards the qualifying periods. Consider doing this as soon as you arrive in Germany and do not have employment yet, for example, spouses)
Times caring for relatives

“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.

Pension Points

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.

Gaps (Lückenauskunft)

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.

Company pension / betriebliche Altersvorsorge

In addition to the German state pension scheme (GRV), many employers offer voluntary company pension schemes (betriebliche Altersvorsorge) to enhance your retirement savings.

Key Features of Company Pension Schemes:

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:
1. Direct Grants (Direktzusage)
2. Support Funds (Unterstützungskassen)
3. Direct Insurance (Direktversicherung)
4. Pension Companies (Pensionskassen)
5. Pension Funds (Pensionsfonds)
Tax Benefits: Contributions to these schemes are tax-free up to a specific annual limit, providing immediate financial advantages.

What You Should Know:

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 / private Altersvorsorge

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.

Private Providers:

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.

Riester Pension Scheme

Introduced in 2002, the Riester pension is designed to supplement your contributions to the German state pension scheme (GRV).
Eligibility: Only individuals actively contributing to the GRV or receiving state benefits like parental leave are eligible for this plan.

Rürup Pension Plan

Introduced in 2005, the Rürup plan is tailored for individuals not contributing to the GRV, such as freelancers, self-employed individuals, or high-income earners.
Features: Contributions are tax-deductible up to a specific annual limit, providing significant tax benefits. Unlike the Riester pension, there are no government subsidies.

Vocabulary

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

Witwe(r) Rente/Pension for your dependents

The Deutsche Renteversicerung pays out a pension to your spouse and children in the event of your death and if certain conditions are met. For more information visit their website. This article is in English. It is important to note that they distinguish between Kleine and Große Rente.