The German State Pension Explained: Everything You Need to Know

"What happens to my pension?" — since 2014 I have heard this question more often than any other. Across more than 40,000 deregistrations it has come up in almost every conversation. The answer: the Deutsche Rentenversicherung (DRV — the German state pension fund) pays 1.8 million pensions into 150+ countries. Your paid contributions do not disappear just because you emigrate.

This guide explains the three-pillar pension model, the 2026 pension calculation, what emigrants have to watch out for, and how EU coordination works.

At a glance

• The German pension system has 3 pillars: statutory pension (gesetzliche Rente), occupational pension (betriebliche Altersvorsorge), and private pension (Riester / Rürup).
• Minimum qualifying period: 5 contribution years for an old-age pension; 35 years for early retirement at 63; 45 years for "retirement at 63 without deductions".
• Current pension value from July 2025: EUR 40.79 per pension point (East-West alignment completed in 2024).
• Standard retirement age: 67 (born 1964 or later).
• The pension is paid into 150+ countries — pension claims remain intact after emigration.
• EU coordination (Regulation 883/2004): contribution periods in EU/EEA/Switzerland are added together.
• With less than 5 contribution years and a move outside the EU/EEA, you can request a refund of the employee share of contributions.
• Double-taxation agreements determine which country taxes the pension.
• Riester subsidies have to be repaid if you move outside the EU/EEA (§ 95 EStG).

"Many of my customers fear they will lose their pension claims when they emigrate. They will not. Your paid contributions are safe, regardless of where you live." — Oliver Frankfurth, founder of deregistration.de

The German pension system

Germany secures your pension through three pillars: the statutory pension, the occupational pension, and the private pension. When you emigrate, you have to understand how these three parts interact — because each pillar has its own rules for foreign payouts.

Pillar 1: The statutory pension (gesetzliche Rentenversicherung)

The statutory pension is the mandatory baseline. Employees, employers, and the state pay in together. From it, you receive your old-age pension, your reduced-earning-capacity pension, and the survivors' pension for your dependants.

The statutory pension covers about 48 percent of your final net income (pension level 2026) — substantially less than the often-cited 70 percent. A safety net (Grundrente) tops up pensions for people who paid in long but with low earnings.

Since 2005 all regional branches operate under one roof: the Deutsche Rentenversicherung Bund + 14 regional carriers.

Pillar 2: Occupational pension (betriebliche Altersvorsorge, bAV)

The second pillar comes from your employer. Many German companies offer occupational pensions as part of the compensation package. Since the Betriebsrentenstärkungsgesetz 2018, there is a mandatory employer contribution of 15 percent on salary conversions (Entgeltumwandlung).

Five models exist: Direktversicherung, Direktzusage, Unterstützungskasse, Pensionskasse, Pensionsfonds. Each works differently — all of them provide additional retirement income.

Contributions are typically 3 to 15 percent of your gross monthly salary. Your employer deducts them directly. Because contributions are pre-tax, you save income tax. During the payout phase: bAV pensions are fully taxable and subject to GKV/PV contributions.

If your employer goes insolvent, the Pensions-Sicherungs-Verein (PSVaG) safeguards your entitlements for Direktzusagen and Pensionskassen.

Pillar 3: Private pension (Riester / Rürup / other)

The third pillar covers private pension policies from banks and insurers. The state subsidises them with bonuses and tax advantages.

The Riester pension

Since 2002 the Riester pension supplements the statutory pension. You qualify as an employee subject to income tax, as a self-employed person in the statutory pension scheme, as a recipient of unemployment benefits, as a civil servant, or as someone with a permanent disability. You invest at least 4 percent of your previous-year gross income, and the state pays:

• Base subsidy: EUR 175 per year
• Child subsidy: EUR 300 per year per child (born 2008 onwards)
• Career-starter bonus: EUR 200 one-off, contract signed under age 25
• Tax deduction (Sonderausgaben): up to EUR 2,100 per year

Important on emigration: A move out of the EU/EEA triggers a full repayment of the state subsidy (§ 95 EStG). Within the EU/EEA the subsidy stays in place.

The Rürup pension (Basisrente)

The Rürup pension (since 2005) targets self-employed people, freelancers, and high earners — anyone outside the statutory system without Riester eligibility. No subsidies, but tax advantages on contributions up to EUR 27,566 per year (2025).

Properties:

• Payout lifetime as pension — no lump-sum payout
• Cannot be pledged, transferred, or inherited (except limited to spouses / orphans)
• Tax-wise after emigration sometimes better than in Germany — depends on the DTA with the destination country

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How is the statutory pension funded?

The system runs on a pay-as-you-go model with mandatory contributions. You and your employer pay in together — and you jointly fund today's pensioners. Today's contributors acquire claims against tomorrow's contributors.

Contribution rate 2026: 18.6 percent of gross salary. You pay half (9.3 percent), your employer the other half.

Contribution assessment ceiling 2026: EUR 8,450/month = EUR 101,400/year (nationwide since 2025)

When you register with the pension system, you receive your Sozialversicherungsausweis with a unique number. You need this number for every job change — give it to your new employer so your contributions are credited correctly.

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Who qualifies for the German pension?

The basic rule: at least 5 years (60 months) of insurance time in the statutory pension system — then you have a claim on an old-age pension. Less than 5 years? You can still apply for a refund of your employee contribution share (see below).

Even without your own contributions, qualifying periods can count toward the waiting period:

• Child-raising periods (Kindererziehungszeiten): up to 3 years per child (born 1992+), 2.5 years (born before 1992)
• Care periods (Pflegezeiten): for caring for a close relative
• Education periods (Ausbildungszeiten): school, university, vocational training
• Receipt of unemployment benefits I / sick pay / ALG II (limited)
• Periods of reduced earning capacity
• Disabled-specific employment (at least 1 year)
• Members of religious societies (deaconesses, nuns)
• Artists, journalists, midwives, coastal fishermen (mandatory insurance despite self-employment)
• EU / EEA contribution periods (coordination under Regulation 883/2004)

"To have a pension claim, you need a total of 5 years of insurance time. Beyond employed work, that includes child-raising, education, and several other recognised periods." — Oliver Frankfurth

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Refund of contributions: under 5 years or emigration

If you do not reach the 5-year minimum and have no entitlement, you can apply for a refund of the employee share (9.3 percent of your gross income).

Conditions (§ 210 SGB VI):

• Insurance freedom achieved (waiting period not met, no claim on old-age pension)
• 24 months without mandatory contributions abroad (outside EU/EEA)
• Application filed with the DRV

Important: The refund deletes your existing pension claims. Before applying, check whether you might pay in again in the foreseeable future and reach the 5-year threshold.

Practical help: Fundsback

The DRV application is complex, language-heavy, and requires detailed documentation. Fundsback has specialised in exactly this process:

• Success-based fee — you only pay when the refund arrives
• Full-service: application, communication with the DRV, translations
• Specialised in international cases: also for residents abroad
• Online processing: no in-person bureaucracy required

Check your claim for free — or read the pension refund guide and the dedicated non-EU citizens guide first.

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How much pension will I get?

The amount depends on your contributions over your working life. For one year of contributions at the average earnings of all contributors, you receive one earning point (Entgeltpunkt or Rentenpunkt). Earn more and you get more points; earn less and you get fewer.

Average earnings 2026 (preliminary): EUR 50,493 per year (West values, federal-uniform from 2025).

At retirement, the DRV adds up all your points and calculates your monthly pension.

Four concrete pension examples

Example 1: Average earner, 45 contribution years

• 45 points × EUR 40.79 = EUR 1,835 per month gross
• After GKV/PV (~11.5 percent) and tax: ~EUR 1,500 net

Example 2: Part-time work history, 30 contribution years, 70 percent average

• 21 points × EUR 40.79 = EUR 857 per month gross
• In the Grundrente range (top-up possible, see below)

Example 3: Academic with late entry, 35 contribution years, 130 percent average

• 45.5 points × EUR 40.79 = EUR 1,856 per month gross
• Higher contributions, but shorter duration evens out

Example 4: Early retiree at 63 (born 1964+, 40 contribution years)

• 40 points × EUR 40.79 × 0.856 (14.4 percent deduction for 4 years early) = EUR 1,396 per month gross

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How is the pension calculated?

The pension calculation follows a clear formula with four factors:

Monthly pension = pension points × access factor × current pension value × pension type factor

The four factors in detail

• Pension points: For each year in the statutory pension system you collect points. 1 point equals the average income. Double the average earnings → 2 points. Upper limit: about 1.8–2.17 points per year (depends on the contribution assessment ceiling).
• Access factor (Zugangsfaktor): Retire at the standard retirement age (67) and your factor is 1.0. Every month earlier costs 0.3 percent deduction (= 0.003 per month). Every month later adds 0.5 percent bonus (= 0.005 per month).
• Pension value: Each pension point has a euro value, adjusted annually by the federal government (effective 1 July each year).
• Pension type factor: Depends on the pension type. Standard old-age pension: 1.0. Full reduced earning capacity: 1.0. Partial reduced earning capacity: 0.5. Large widow's pension: 0.55. Small widow's pension: 0.25. Half-orphan: 0.1. Full orphan: 0.2.

Current pension values (history)

The East-West alignment has been completed since 2024. Increase from 2024 to 2025: +3.74 percent.

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Minimum pension: the Grundrente

After years of negotiation, the federal government introduced the Grundrente in January 2021. It guarantees an appropriate pension to everyone who paid into the system long-term.

Who qualifies for the Grundrente?

• At least 33 years of qualifying time (working years, child-raising, care/illness periods)
• Income limit: monthly income below EUR 1,317 (single) / EUR 2,055 (couple) — otherwise a graduated reduction
• Automatic review: no application required; the DRV checks it automatically

Size of the top-up

The Grundrente top-up is up to roughly EUR 460 per month (2026 baseline). The actual amount depends on contribution duration and average pension-point value.

Pensioners' health insurance (KVdR)

Once you draw your German pension, you are normally a mandatory member of the KVdR. Contributions:

• Standard GKV rate: 14.6 percent + insurer-specific top-up (average 1.7 percent, 2026) — about 16.3 percent total
• Pensioners pay half; the DRV pays the rest
• Long-term-care insurance: 3.6 percent (no child) / 3.4 percent (1 child) — fully borne by the pensioner

With residence abroad, KVdR membership depends on the DTA and destination country — see leaving Germany in retirement.

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When do I reach retirement age?

Germany has gradually raised the retirement age. Anyone born from 1964 onwards has a standard retirement age of 67.

Early pension

• At 63 if you have 35 qualifying contribution years — with a 0.3 percent deduction per month early (max 14.4 percent)
• "Pension at 63 without deductions" with 45 contribution years — for 1964+ effectively from age 65 (two months later per birth year from 1953)
• Severely disabled: early from 62 with 0.3 percent deduction per month, 65 without deduction

Miners, survivors, reduced earning capacity

• Miners: retirement age 62 (1964+)
• Widow's / widower's pension: age 47
• Reduced earning capacity pension: age-independent if officially assessed

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Can I claim my German pension abroad?

Yes. Once you reach the legal retirement age, you can claim your pension in any country in the world. The DRV currently pays into 150+ countries — about 248,000 pensions go abroad.

"Before you leave Germany, request a current confirmation of your insurance periods. Check it carefully — gaps or errors must be corrected because they affect your later pension." — Oliver Frankfurth

Practical points for foreign payouts

• Transfer costs are borne by the DRV (within SEPA free)
• Exchange-rate risk for non-euro destinations — check a multi-currency account via Wise / Revolut
• Lebensbescheinigung annually (RV-LB form) — see leaving Germany in retirement
• Foreign Pension Ordinance can trigger reductions for GDR / Reichs-era pension shares
• Keep the address current with the DRV
• Consulate registration (voluntary) eases authority contact

Taxation abroad

Which country taxes your pension is determined by the double-taxation agreement (DTA) between Germany and your destination. Germany has DTAs with 90+ countries. Three possible scenarios:

1. Germany retains the right to tax (e.g. Portugal, Italy, Netherlands)
2. The country of residence taxes (e.g. France, Switzerland, Thailand)
3. Shared taxation right with credit

Detailed table with 15 countries: see leaving Germany in retirement.

Tax treatment of the pension in Germany

Since 2005 Germany has used deferred taxation of pensions: the taxable share rises every year. Overview:

The pension allowance set in the first year remains fixed in euros for life. Pension increases are fully taxable.

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EU coordination: pension from multiple countries

If you worked in multiple EU/EEA countries or Switzerland, Regulation (EC) 883/2004 coordinates your pension claims. The key rules:

• Contribution periods from EU/EEA/Switzerland are added together — relevant for the 5-year waiting period
• Each country pays separately, pro-rata based on the insurance periods in that country
• File the application in the country of residence — that system forwards it to the others
• Pro-rata calculation by each country individually
• No loss through border changes — even short insurance periods (e.g. 6 months in France) count

EU coordination example

You worked 10 years in Germany, 8 in Spain, 4 in France. Three pension sources:

• Spain: pays for the 8 years under Spanish law
• France: pays for the 4 years under French law
• Germany: pays for the 10 years, but for the 5-year waiting period all 22 years count

All three pensions arrive at your country of residence. More: leaving Germany in retirement.

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The German pension for foreigners

As an expat or non-German national living in Germany, you typically pay into the statutory pension system. Your pension claim arises after 5 contribution years.

If you do not reach 5 years, you can have your employee share (9.3 percent) refunded after 24 months without mandatory contributions — provided you settle in a country outside the EU/EEA. EU/EEA citizens can usually use EU coordination instead.

Full application details: pension refund from Germany — and the simple route via Fundsback. Specifically for non-EU citizens: pension refund for non-EU citizens.

If you move on to a third country after paying in, you can still apply for your pension abroad. Whether and how it works depends on the social-security agreement between Germany and your new country.

Countries with social-security agreements (selection)

Germany has bilateral agreements with the US, Canada, Australia, Israel, Turkey, Morocco, Tunisia, Brazil, Chile, Uruguay, the Philippines, India, Japan, South Korea, and China, among others.

In these countries, contribution periods are mutually recognised, and the pension flows without the Foreign Pension Ordinance reductions.

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Special cases: mother's pension, divorce settlement, child raising

Mother's pension (and fathers)

Anyone who bore or raised children gets pension points for child-raising:

• Children born before 1992: 2.5 points per child (Mütterrente II since 2019)
• Children born from 1992 onwards: 3 points per child (standard child-raising period)

At a pension value of EUR 40.79, that is EUR 101.98 (pre-1992) or EUR 122.37 (1992+) extra per month per child. Important: the credit goes automatically to the mother — the father can apply for the points if he handled the predominant share of upbringing.

Recognition periods for child-raising

Beyond the strict child-raising period, the Berücksichtigungszeit counts up to the child's 10th birthday — it does not directly increase the point value but improves the waiting period and can lift the point value for low-earning parents.

Pension splitting after divorce

In a divorce, the pension claims acquired during the marriage are split equally between the ex-partners (Versorgungsausgleich, § 1587 BGB). The partner with more points gives some up; the one with fewer receives the difference. This applies to statutory pension, bAV, and private Rürup pensions.

Important on emigration: The Versorgungsausgleich only happens if the divorce was decided before a German court. For foreign divorces, a subsequent application to the German family court may be possible.

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Reduced earning capacity pension (Erwerbsminderungsrente)

The Erwerbsminderungsrente (EM-Rente) protects you when you can no longer work for health reasons — regardless of age. Two levels:

• Full EM pension: You can work less than 3 hours a day — pension type factor 1.0
• Partial EM pension: You can work 3–6 hours a day — pension type factor 0.5

Conditions

• At least 5 contribution years in the statutory pension system
• At least 3 years of mandatory contributions in the last 5 years before the start of the reduced capacity
• Medical assessment by the DRV confirms the reduced capacity
• Reha before pension: Before granting an EM pension, the DRV checks whether rehabilitation can restore work capacity

Imputed period as compensation

For EM pensions, the DRV calculates an imputed period up to a defined age (2026: 66 years + 6 months) as if you had continued paying contributions at your average rate. That prevents young EM recipients from having too few points.

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Survivors' pensions: widows, widowers, orphans

When an insured person dies, dependants receive a pension under certain conditions:

Widow's and widower's pension

• Large widow's pension (55 percent of the insured pension):
  • Widow/widower is 47+ years old or has reduced earning capacity or raises a child under 18
• Small widow's pension (25 percent of the insured pension):
  • Paid for 24 months, then ends
  • For pre-2002 marriages with widow status before 2002: lifelong payment possible

Conditions for survivors' pension

• The insured person had completed the 5-year waiting period (or died from a work accident)
• The marriage lasted at least 1 year (protection against "supply marriages")
• Own income is offset (allowance approximately EUR 1,000 per month net)

Orphan's pension

• Half-orphan's pension (10 percent of the insured pension) for the death of one parent
• Full orphan's pension (20 percent) for the death of both parents
• Until age 18, with education / studies until age 27

Pension splitting between spouses

Alternative to the classic widow's pension: on the death of a partner, the pension claims acquired during the marriage are split. Sensible when both partners have similar own pensions. Application filed with the DRV.

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How do I apply for my pension?

Step by step:

1. Check entitlement: Do you have 5 contribution years in the German system (including EU periods)? The DRV's annual Renteninformation (sent automatically) shows your status.
2. Set up an online account at the DRV — usable digitally via eservice-drv.de.
3. Collect documents: social-security number, ID, employment history, contribution records, CV, marriage / birth certificates (for survivors' pensions).
4. Trigger a Kontenklärung — review all insurance periods, close gaps.
5. File the pension application — in writing, online, or at a DRV advisory office. From abroad also via a German embassy / consulate.
6. Processing time: 3–6 months, longer for complex cases.
7. Check the notice (Bescheid) — objection deadline is 1 month; file an objection if it contains errors.
8. Receive the pension: After approval, monthly payment to your bank account.

Tip: Start preparation about 6 months before your retirement age. With emigration involved, 12 months.

Pension calculator and online account

The DRV offers free online tools:

• eservice-drv.de: digital account, Renteninformation, application online
• Pension calculator (in the online account, with concrete values from your insurance history)
• deutsche-rentenversicherung.de with phone and in-person advice

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Closing the pension gap: strategies

The statutory pension alone rarely covers your accustomed standard of living. The pension level (ratio of average pension to average income) in 2026 sits around 48 percent net before taxes — many retirees know this as the "supply gap".

How big is the gap?

Rule of thumb: in retirement you need roughly 80 percent of your final net income to maintain your standard of living. The statutory pension delivers about half to two-thirds. The difference is your pension gap.

Example: Last net EUR 3,000/month → retirement need ~EUR 2,400 → statutory pension perhaps EUR 1,500 → gap EUR 900/month.

Strategies to close the gap

1. Voluntary GRV contributions (also possible after emigration for German citizens)
2. Maximise occupational pension — use salary conversion up to the contribution ceiling
3. Riester pension (only useful if you stay in Germany or EU/EEA)
4. Rürup pension for self-employed + high earners
5. Private pension or fund savings plans without state subsidies (more flexible, but no bonuses)
6. Real estate as retirement provision (mortgage-free living reduces cash needs)
7. Stock / ETF savings plans over long horizons
8. Self-employed activity in retirement (no income limit beyond standard retirement age)

Earning alongside the pension

Since 2023 you can earn unlimited income alongside the standard old-age pension without reductions. Early-retirement income limits have also been lifted. Reduced-earning-capacity pensions still have limits.

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Practical advice for emigrants

From 40,000+ deregistrations we see the typical trip-wires:

1. Kontenklärung before the Abmeldung Have all insurance periods confirmed before the move. Post-emigration corrections from abroad are slower.

2. Check Riester before leaving Move out of EU/EEA → subsidy repayment is mandatory. Sell the contract beforehand (sell life insurance) or set it to a paused (ruhend) state.

3. Keep the address current The DRV sends Renteninformation and Lebensbescheinigung forms annually. Outdated address = paused payments.

4. Tax adviser with international expertise The combination DTA + limited tax liability + destination-country law is complex. One hour of advice often saves four-digit amounts.

5. Document EU contribution periods Worked in multiple EU countries? Collect contribution proofs from each country. Coordination otherwise gets sticky.

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Video: claim your German pension abroad

The video is in German — turn on YouTube's auto-translated English subtitles (CC button → settings).

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Frequently asked questions

Related guides

• Leaving Germany in retirement — full retirement-abroad guide
• Pension refund from Germany — refund of contributions under 5 years
• Pension refund for non-EU citizens
• Sell your German life insurance — optimise Riester / Rürup before the move
• Expat health insurance — cover after retirement abroad
• Tax obligations after leaving Germany
• Best bank account for emigrants — account for the pension payouts
• Deregister online — the formal step
• Leaving Germany checklist — every step in order

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Disclosure: This article contains a recommendation for our partner Fundsback. The initial check is free. Fundsback earns a success-based fee on the recovered refund.

This article is based on our experience from 40,000+ deregistrations since 2014. It does not replace individual legal or tax advice. Values and contribution rates refer to 2026 and may change.

Last updated: 26 May 2026 — no legal advice in the sense of the German Legal Services Act (RDG).