On this page
SHORT ANSWER
Moving back home after a serious illness changes where you live – not what you live from. Germany’s statutory disability pension mainly asks whether you can still work a few hours in any job, and pays new recipients around €1,067 a month on average. Private occupational disability insurance (Berufsunfähigkeitsversicherung, BU) can instead protect the income of your actual profession – and some policies keep paying worldwide.
New disability pensions
≈ 176,000
in Germany in 2025
Average new pension
€1,067
per month, 2025
€1,500 gap over 25 years
€450,000
before inflation
Many international professionals come to Germany with ambitious career plans: a new role, more responsibility, a higher salary and the next step in their professional development.
But one question is often overlooked: what happens if your health no longer allows you to do the job you came to Germany for?
In conversations with internationals, I often hear the same answer: “If that happens, I’ll simply go back to my home country.”
That can certainly be part of a plan. Family support may be available there, living costs may be lower, and returning home after a serious illness may feel like the natural choice. But moving country answers only one question: where will you live? It does not automatically answer another: what will you live from?
Occupational disability is not the same as being unable to work at all
Germany provides basic protection through its statutory pension insurance. However, the statutory reduced earning capacity pension (Erwerbsminderungsrente) and private occupational disability insurance are not the same thing.
The statutory system primarily looks at how many hours a day you can still work on the general labour market – in any job. It does not, as a rule, protect the income of your specific profession. Only people born before 2 January 1961 still have limited statutory protection for their own occupation.
For qualified professionals, that distinction matters. A doctor may no longer be able to practise medicine, an engineer may no longer cope with the demands of the role, a consultant may no longer manage intensive travel and workload – while still theoretically being able to do another kind of work.
Private occupational disability insurance (BU) can instead focus on whether you can still perform your actual profession, depending on the policy terms.
| Statutory disability pension | Private BU insurance | |
|---|---|---|
| What is assessed | Hours you can work in any job (under 3 h = full, 3–6 h = partial) | Whether you can still do your own profession (usually 50% threshold) |
| Amount | Depends on your contributions; €1,067 average for new recipients in 2025 | The monthly amount you insure |
| Waiting period | Generally 5 years of contributions, 3 of them in the last 5 years | Cover from the start of the policy |
| Abroad | Possible, but depends on the country and social security agreements | Depends on the policy – some insurers cover worldwide |
The risk is real
Losing your earning capacity is not limited to serious accidents. In 2025, around 176,000 people in Germany newly received a reduced earning capacity pension. The average monthly payment for new recipients was about €1,067.
Mental and psychosomatic illnesses account for a large share of cases, alongside neurological, oncological and orthopaedic conditions. This matters for professionals in particular: being able to manage everyday life does not mean being able to continue a demanding career.
Different countries, different systems
For international professionals, the topic is hard to assess because disability protection works differently around the world:
- Switzerland: protection is more strongly built into the statutory and occupational pension systems.
- Netherlands: the focus is heavily on your remaining earning capacity.
- United States: long-term disability insurance is often provided as an employee benefit, especially by larger employers.
So someone moving to Germany may assume that similar protection comes automatically from the state or the employer. That is not necessarily the case. Germany’s system is an important safety net – but it can leave a considerable gap between statutory benefits and the income you earned before.
“I can live much cheaper back home”
That may be true – and lower living costs can significantly reduce the financial consequences. But they do not eliminate them.
Even €1,500 a month adds up to €18,000 a year. Over 25 years, that is €450,000 – before inflation, retirement savings or additional healthcare costs.
Returning home can be a sensible relocation strategy. It is not automatically an income strategy.
Does occupational disability insurance still work abroad?
For internationally mobile professionals, a key question is whether the cover continues after leaving Germany. This depends on the insurer and the policy terms.
Example Allianz: Allianz occupational disability insurance applies worldwide and without a time limit – including longer professional or private stays abroad. Your protection is therefore not tied to living in Germany and can continue if your career takes you home or to another country.
How much disability insurance do you need?
A simple rule of thumb: insure around 75% of your net income – that is roughly what insurers accept and what you need to keep your rent, food and savings going. Move the slider to see your number and what the state would pay instead.
Rule of thumb: insurers cover around 70–80% of your net income. The statutory disability pension requires at least five years of contributions; new full disability pensions averaged about €1,100 a month in 2025 and are taxed and subject to contributions. Simplified illustration – not advice.
The question worth asking
Occupational disability insurance is not the right solution for everyone. Some people have enough assets, rental income, family support or employer benefits to carry the risk themselves.
So the important question is not simply whether you need insurance. It is: if my health prevents me from continuing my profession, what will replace the income that profession was expected to generate?
Changing countries may change your cost of living, your social environment and your plans. It does not automatically restore your ability to work.
Your country may change. Your career may change. But your ability to earn an income remains the financial foundation behind both.
Book a free callFrequently asked questions
What is the difference between Berufsunfähigkeit and Erwerbsminderung?
Berufsunfähigkeit (occupational disability) means you can no longer work in your own profession, usually to at least 50%. Erwerbsminderung (reduced earning capacity) is the statutory test: it asks how many hours a day you can still work in any job on the general labour market. Private BU insurance covers the first; the statutory pension the second.
How much is the statutory disability pension in Germany?
It depends on your contribution history. In 2025, the average full reduced earning capacity pension for new recipients was about €1,067 a month. Expats who have only paid into the German system for a few years usually receive less – and need at least five years of contributions to qualify at all, unless the disability is caused by an accident at work.
Does my BU insurance keep paying if I move back to my home country?
That depends on the insurer and the policy. Allianz occupational disability insurance, for example, applies worldwide and without a time limit. Check the terms on worldwide cover, medical reports from abroad and claims in another language before you sign.
When should expats take out occupational disability insurance?
Ideally early: premiums depend on your age, profession and health at the start, and new illnesses can make cover more expensive or impossible later. Many expats start with a policy soon after arriving in Germany.
Is BU insurance necessary for everyone?
No. If your assets, rental income, family support or employer benefits could replace your income for many years, you may be able to carry the risk yourself. For most professionals who depend on their salary, it is one of the most important insurances.
Sources (checked 25 October 2026)
- Deutsche Rentenversicherung: Erwerbsminderungsrente
- Deutsche Rentenversicherung: Statistiken und Berichte (Rentenzugang 2025)
- Allianz: Berufsunfähigkeitsversicherung – berufliche Flexibilität und Ausland
This page gives general information and does not replace personal advice. Tax aspects are not considered; finanXpats does not provide tax advice.