Pension ABC

Basically all people who are employed resulting from an employment contract in Germany have to be insured in the statutory pension insurance scheme.

Exceptions are made in the case of a ‚posting’. For example, someone who is working in Germany is not subject to German statutory pension insurance if he or she is in employment in another country and is ‚posted’ to work in Germany by his/her employer for a limited period of time.

If an employee, for example, is posted from Germany to another member state of the European Union, the European Economic Area (Norway, Liechtenstein and Iceland), Switzerland or a contracting state (another country with which Germany has a bilateral agreement on social security) for a limited period, the provisions of the country from where the employee was posted will apply. Therefore, German insurance periods are established despite the fact that the employment is carried out abroad.

Your employer takes care of your registration with the compulsory statutory health insurance as the institution collecting all social insurance contributions for you.

Whoever is not subject to compulsory insurance can, in principle and if residing in Germany, voluntarily insure themselves for periods from their 16th birthday on. The level of contributions paid can be freely selected between a minimum and maximum contribution level. Through the payment of voluntary contributions minimum insurance periods in the statutory pension insurance can be fulfilled and entitlements maintained or increased.

The question of whether voluntary contributions are an appropriate or sensible option for you or not can be answered best within a personal consultation.

Contributions are paid by both, employer and employee. For the detailed rate see the Pension Landscape in Germany.

A refund of contributions when moving abroad is possible, in principle, if:

• There is no compulsory insurance in the German statutory pension insurance,
• There is no right to voluntary insurance in the German statutory pension insurance and
• At least 24 months have passed since the withdrawal from the German statutory pension insurance.

In order to determine whether all requirements have been met, you should pay close attention to international social insurance law. Whether a refund of contributions is possible or not depends on various factors, e.g. your nationality or country of residence.

Link: More information on refunding of contributions

If certain periods of social insurance have to be fulfilled, then an aggregation of insurance periods in Germany is possible with other EU/EEA members as well as Switzerland and other countries with which Germany has a bilateral agreement on social insurance.

Link:

• More information on mutual recognition of pensions abroad
• General and country specific brochures

We recommend contacting the Deutsche Rentenversicherung to clarify your insurance periods. All payslips and documents (e.g. about periods of unemployment or sick leaves) are very important for this process. It is possible to contact the Deutsche Rentenversicherung for clarifying your insurance periods at any time.

Link: The information and advice centres of the Deutsche Rentenversicherung will help you with the application process
(Only a German language version is available)

Our advice
It is important to inform your local branch of the Deutsche Rentenversicherung about your new address in writing every time you move, stating your German insurance number.

• Reduced earnings capacity pension
• Old-age pension
• Survivor’s pension for widows, widowers and orphans
• Rehabilitation services (medical and occupational)
• Health insurance subsidy for pensioners/retirees
• Information and advice on all pension related matters

The minimum insurance period required for entitlement to an old-age pension is 5 years. These 5 years include periods paying contributions as well as time spent raising a child. The retirement age for this pension will be raised from 65 to 67 years of age. You can take retirement benefits from age 63 but the payments received will incur a pension reduction. In the case of early retirement you are also required to fulfil longer minimum insurance periods and other conditions such as a qualifying period of 35 years.

Link: More information on old age pensions

There is also a survivor’s pension for widows, widowers and orphans when certain conditions are met.

Link: More information on survivor’s pension

The Deutsche Rentenversicherung also pays reduced earnings capacity pension for those who cannot work due to their state of health.

Link: More information on reduced earnings capacity pension

If certain periods of social insurance have to be fulfilled, then an aggregation of insurance periods in Germany is possible with other EU/EEA members as well as Switzerland and other countries with which Germany has a bilateral agreement on social insurance.

Link:

• More information on mutual recognition of pensions abroad
• General and country specific brochures

Whoever is not subject to compulsory insurance can, in principle and if residing in Germany, voluntarily insure themselves for periods from their 16th birthday on. The level of contributions paid can be freely selected between a minimum and maximum contribution level. Through the payment of voluntary contributions minimum insurance periods in the statutory pension insurance can be fulfilled and entitlements maintained or increased.

The question of whether voluntary contributions are an appropriate or sensible option for you or not can be answered best within a personal consultation.

The statutory pension is calculated on the basis of all covered insurance periods. In addition to contribution periods this includes: training periods, periods of unemployment or sickness and parental leave. When calculating if the minimum insurance periods and other conditions have been met, it has to be examined whether times spent abroad have to be taken into account.

As a rule of thumb, one year of average salary (€35,000) will result in a monthly pension of around €29. Therefore, ten years spent in Germany will result in a monthly pension of €290, for example.

The retirement age for this pension will be raised from 65 to 67 years of age. You can take retirement benefits from age 63 but the payments received will incur a pension reduction. In the case of early retirement you are also required to fulfil longer minimum insurance periods and other conditions such as a qualifying period of 35 years.

Link: More information on old age pensions

Within the European Union, the European Economic Area (Norway, Liechtenstein and Iceland), Switzerland and in countries with which Germany has a bilateral social security agreement (contracting states), the claim should be submitted to the responsible statutory pension insurance institution in your current country of residence in order to get your pension.

If you indicate that you were insured in the German statutory pension insurance, this institution will automatically get in touch with the Deutsche Rentenversicherung. The relevant institution in every country examines whether all the requirements have been fulfilled and when the pension can be paid.

If you have completed insurance periods in several EU/EEA member states, in Switzerland or contracting states, a pension claim in one state is valid in all other states. Therefore, only one claim is necessary. The institution you have made the application to contacts the relevant foreign institution(s) and starts the pension process.

In countries without a bilateral agreement, the German embassy or consulate will help. They will accept your pension application and forward it. The pension claim can also be submitted directly to the Deutsche Rentenversicherung.

Link: The staff of the Deutsche Rentenversicherung information and advice centres will answer your questions

It is possible to apply for a pension in Germany while still working abroad but your salary can affect the amount of the pension or even your entitlement.

More information on international pensions
More information on validation of pension entitlements

The pension institution of each country will examine if you are entitled to a pension payment according to the relevant domestic legislation. Therefore you might fulfil the requirements for a pension in one country but not yet in another country. In order to avoid any disadvantages, you should inquire with the social insurance institution of each country about your pension entitlements as early as possible.

The monthly pension will be transferred to a bank account either in Germany or abroad.

Basically all people who are employed resulting from an employment contract in Germany have to be insured in the statutory pension insurance scheme.

Exceptions are made in the case of a ‚posting’. For example, someone who is working in Germany is not subject to German statutory pension insurance if he or she is in employment in another country and is ‚posted’ to work in Germany by his/her employer for a limited period of time.

If an employee, for example, is posted from Germany to another member state of the European Union, the European Economic Area (Norway, Liechtenstein and Iceland), Switzerland or a contracting state (another country with which Germany has a bilateral agreement on social security) for a limited period, the provisions of the country from where the employee was posted will apply. Therefore, German insurance periods are established despite the fact that the employment is carried out abroad.

Your employer takes care of your registration with the compulsory statutory health insurance as the institution collecting all social insurance contributions for you.

Whoever is not subject to compulsory insurance can, in principle and if residing in Germany, voluntarily insure themselves for periods from their 16th birthday on. The level of contributions paid can be freely selected between a minimum and maximum contribution level. Through the payment of voluntary contributions minimum insurance periods in the statutory pension insurance can be fulfilled and entitlements maintained or increased.

The question of whether voluntary contributions are an appropriate or sensible option for you or not can be answered best within a personal consultation.

Contributions are paid by both, employer and employee. For the detailed rate see the Pension Landscape in Germany.

A refund of contributions when moving abroad is possible, in principle, if:

• There is no compulsory insurance in the German statutory pension insurance,
• There is no right to voluntary insurance in the German statutory pension insurance and
• At least 24 months have passed since the withdrawal from the German statutory pension insurance.

In order to determine whether all requirements have been met, you should pay close attention to international social insurance law. Whether a refund of contributions is possible or not depends on various factors, e.g. your nationality or country of residence.

Link: More information on refunding of contributions

If certain periods of social insurance have to be fulfilled, then an aggregation of insurance periods in Germany is possible with other EU/EEA members as well as Switzerland and other countries with which Germany has a bilateral agreement on social insurance.

Link:

• More information on mutual recognition of pensions abroad
• General and country specific brochures

We recommend contacting the Deutsche Rentenversicherung to clarify your insurance periods. All payslips and documents (e.g. about periods of unemployment or sick leaves) are very important for this process. It is possible to contact the Deutsche Rentenversicherung for clarifying your insurance periods at any time.

Link: The information and advice centres of the Deutsche Rentenversicherung will help you with the application process
(Only a German language version is available)

Our advice
It is important to inform your local branch of the Deutsche Rentenversicherung about your new address in writing every time you move, stating your German insurance number.

• Reduced earnings capacity pension
• Old-age pension
• Survivor’s pension for widows, widowers and orphans
• Rehabilitation services (medical and occupational)
• Health insurance subsidy for pensioners/retirees
• Information and advice on all pension related matters

The minimum insurance period required for entitlement to an old-age pension is 5 years. These 5 years include periods paying contributions as well as time spent raising a child. The retirement age for this pension will be raised from 65 to 67 years of age. You can take retirement benefits from age 63 but the payments received will incur a pension reduction. In the case of early retirement you are also required to fulfil longer minimum insurance periods and other conditions such as a qualifying period of 35 years.

Link: More information on old age pensions

There is also a survivor’s pension for widows, widowers and orphans when certain conditions are met.

Link: More information on survivor’s pension

The Deutsche Rentenversicherung also pays reduced earnings capacity pension for those who cannot work due to their state of health.

Link: More information on reduced earnings capacity pension

If certain periods of social insurance have to be fulfilled, then an aggregation of insurance periods in Germany is possible with other EU/EEA members as well as Switzerland and other countries with which Germany has a bilateral agreement on social insurance.

Link:

• More information on mutual recognition of pensions abroad
• General and country specific brochures

Whoever is not subject to compulsory insurance can, in principle and if residing in Germany, voluntarily insure themselves for periods from their 16th birthday on. The level of contributions paid can be freely selected between a minimum and maximum contribution level. Through the payment of voluntary contributions minimum insurance periods in the statutory pension insurance can be fulfilled and entitlements maintained or increased.

The question of whether voluntary contributions are an appropriate or sensible option for you or not can be answered best within a personal consultation.

The statutory pension is calculated on the basis of all covered insurance periods. In addition to contribution periods this includes: training periods, periods of unemployment or sickness and parental leave. When calculating if the minimum insurance periods and other conditions have been met, it has to be examined whether times spent abroad have to be taken into account.

As a rule of thumb, one year of average salary (€35,000) will result in a monthly pension of around €29. Therefore, ten years spent in Germany will result in a monthly pension of €290, for example.

The retirement age for this pension will be raised from 65 to 67 years of age. You can take retirement benefits from age 63 but the payments received will incur a pension reduction. In the case of early retirement you are also required to fulfil longer minimum insurance periods and other conditions such as a qualifying period of 35 years.

Link: More information on old age pensions

Within the European Union, the European Economic Area (Norway, Liechtenstein and Iceland), Switzerland and in countries with which Germany has a bilateral social security agreement (contracting states), the claim should be submitted to the responsible statutory pension insurance institution in your current country of residence in order to get your pension.

If you indicate that you were insured in the German statutory pension insurance, this institution will automatically get in touch with the Deutsche Rentenversicherung. The relevant institution in every country examines whether all the requirements have been fulfilled and when the pension can be paid.

If you have completed insurance periods in several EU/EEA member states, in Switzerland or contracting states, a pension claim in one state is valid in all other states. Therefore, only one claim is necessary. The institution you have made the application to contacts the relevant foreign institution(s) and starts the pension process.

In countries without a bilateral agreement, the German embassy or consulate will help. They will accept your pension application and forward it. The pension claim can also be submitted directly to the Deutsche Rentenversicherung.

Link: The staff of the Deutsche Rentenversicherung information and advice centres will answer your questions

It is possible to apply for a pension in Germany while still working abroad but your salary can affect the amount of the pension or even your entitlement.

More information on international pensions
More information on validation of pension entitlements

The pension institution of each country will examine if you are entitled to a pension payment according to the relevant domestic legislation. Therefore you might fulfil the requirements for a pension in one country but not yet in another country. In order to avoid any disadvantages, you should inquire with the social insurance institution of each country about your pension entitlements as early as possible.

The monthly pension will be transferred to a bank account either in Germany or abroad.

Basically all people who are employed resulting from an employment contract in Germany have to be insured in the statutory pension insurance scheme.

Exceptions are made in the case of a ‚posting’. For example, someone who is working in Germany is not subject to German statutory pension insurance if he or she is in employment in another country and is ‚posted’ to work in Germany by his/her employer for a limited period of time.

If an employee, for example, is posted from Germany to another member state of the European Union, the European Economic Area (Norway, Liechtenstein and Iceland), Switzerland or a contracting state (another country with which Germany has a bilateral agreement on social security) for a limited period, the provisions of the country from where the employee was posted will apply. Therefore, German insurance periods are established despite the fact that the employment is carried out abroad.

Your employer takes care of your registration with the compulsory statutory health insurance as the institution collecting all social insurance contributions for you.

Whoever is not subject to compulsory insurance can, in principle and if residing in Germany, voluntarily insure themselves for periods from their 16th birthday on. The level of contributions paid can be freely selected between a minimum and maximum contribution level. Through the payment of voluntary contributions minimum insurance periods in the statutory pension insurance can be fulfilled and entitlements maintained or increased.

The question of whether voluntary contributions are an appropriate or sensible option for you or not can be answered best within a personal consultation.

Contributions are paid by both, employer and employee. For the detailed rate see the Pension Landscape in Germany.

A refund of contributions when moving abroad is possible, in principle, if:

• There is no compulsory insurance in the German statutory pension insurance,
• There is no right to voluntary insurance in the German statutory pension insurance and
• At least 24 months have passed since the withdrawal from the German statutory pension insurance.

In order to determine whether all requirements have been met, you should pay close attention to international social insurance law. Whether a refund of contributions is possible or not depends on various factors, e.g. your nationality or country of residence.

Link: More information on refunding of contributions

If certain periods of social insurance have to be fulfilled, then an aggregation of insurance periods in Germany is possible with other EU/EEA members as well as Switzerland and other countries with which Germany has a bilateral agreement on social insurance.

Link:

• More information on mutual recognition of pensions abroad
• General and country specific brochures

We recommend contacting the Deutsche Rentenversicherung to clarify your insurance periods. All payslips and documents (e.g. about periods of unemployment or sick leaves) are very important for this process. It is possible to contact the Deutsche Rentenversicherung for clarifying your insurance periods at any time.

Link: The information and advice centres of the Deutsche Rentenversicherung will help you with the application process
(Only a German language version is available)

Our advice
It is important to inform your local branch of the Deutsche Rentenversicherung about your new address in writing every time you move, stating your German insurance number.

• Reduced earnings capacity pension
• Old-age pension
• Survivor’s pension for widows, widowers and orphans
• Rehabilitation services (medical and occupational)
• Health insurance subsidy for pensioners/retirees
• Information and advice on all pension related matters

The minimum insurance period required for entitlement to an old-age pension is 5 years. These 5 years include periods paying contributions as well as time spent raising a child. The retirement age for this pension will be raised from 65 to 67 years of age. You can take retirement benefits from age 63 but the payments received will incur a pension reduction. In the case of early retirement you are also required to fulfil longer minimum insurance periods and other conditions such as a qualifying period of 35 years.

Link: More information on old age pensions

There is also a survivor’s pension for widows, widowers and orphans when certain conditions are met.

Link: More information on survivor’s pension

The Deutsche Rentenversicherung also pays reduced earnings capacity pension for those who cannot work due to their state of health.

Link: More information on reduced earnings capacity pension

If certain periods of social insurance have to be fulfilled, then an aggregation of insurance periods in Germany is possible with other EU/EEA members as well as Switzerland and other countries with which Germany has a bilateral agreement on social insurance.

Link:

• More information on mutual recognition of pensions abroad
• General and country specific brochures

Whoever is not subject to compulsory insurance can, in principle and if residing in Germany, voluntarily insure themselves for periods from their 16th birthday on. The level of contributions paid can be freely selected between a minimum and maximum contribution level. Through the payment of voluntary contributions minimum insurance periods in the statutory pension insurance can be fulfilled and entitlements maintained or increased.

The question of whether voluntary contributions are an appropriate or sensible option for you or not can be answered best within a personal consultation.

The statutory pension is calculated on the basis of all covered insurance periods. In addition to contribution periods this includes: training periods, periods of unemployment or sickness and parental leave. When calculating if the minimum insurance periods and other conditions have been met, it has to be examined whether times spent abroad have to be taken into account.

As a rule of thumb, one year of average salary (€35,000) will result in a monthly pension of around €29. Therefore, ten years spent in Germany will result in a monthly pension of €290, for example.

The retirement age for this pension will be raised from 65 to 67 years of age. You can take retirement benefits from age 63 but the payments received will incur a pension reduction. In the case of early retirement you are also required to fulfil longer minimum insurance periods and other conditions such as a qualifying period of 35 years.

Link: More information on old age pensions

Within the European Union, the European Economic Area (Norway, Liechtenstein and Iceland), Switzerland and in countries with which Germany has a bilateral social security agreement (contracting states), the claim should be submitted to the responsible statutory pension insurance institution in your current country of residence in order to get your pension.

If you indicate that you were insured in the German statutory pension insurance, this institution will automatically get in touch with the Deutsche Rentenversicherung. The relevant institution in every country examines whether all the requirements have been fulfilled and when the pension can be paid.

If you have completed insurance periods in several EU/EEA member states, in Switzerland or contracting states, a pension claim in one state is valid in all other states. Therefore, only one claim is necessary. The institution you have made the application to contacts the relevant foreign institution(s) and starts the pension process.

In countries without a bilateral agreement, the German embassy or consulate will help. They will accept your pension application and forward it. The pension claim can also be submitted directly to the Deutsche Rentenversicherung.

Link: The staff of the Deutsche Rentenversicherung information and advice centres will answer your questions

It is possible to apply for a pension in Germany while still working abroad but your salary can affect the amount of the pension or even your entitlement.

More information on international pensions
More information on validation of pension entitlements

The pension institution of each country will examine if you are entitled to a pension payment according to the relevant domestic legislation. Therefore you might fulfil the requirements for a pension in one country but not yet in another country. In order to avoid any disadvantages, you should inquire with the social insurance institution of each country about your pension entitlements as early as possible.

The monthly pension will be transferred to a bank account either in Germany or abroad.