Pension & investing

Examples on this page are simplified and in today’s money. They are illustrations, not forecasts or personal advice – your own numbers depend on your salary, years in Germany and your plans.

The three pillars of a pension for expats in Germany

Pillar	What it is	Who pays
1. Statutory pension (gesetzliche Rente)	Mandatory for employees; based on your earnings and years of contributions	You and your employer, 9.3% each
2. Company pension (betriebliche Altersvorsorge, bAV)	Part of your gross salary goes into a pension plan – tax- and often social-security-free	You, with a mandatory employer subsidy
3. Private pension and investing	ETF savings plans, private pension insurance, the new state-subsidised pension depot from 2027, property	You

How much statutory pension will you get?

Every year you earn exactly the German average salary (about €52,000 in 2026) gives you one pension point. Each point is currently worth €42.52 a month. Earnings above the contribution ceiling of €101,400 a year do not count. To receive any old-age pension, you need at least five years of contributions; the regular retirement age is 67.

Everyday example

Daniel, 32, moves from Brazil to Dresden as an engineer earning €70,000 gross a year. If he works in Germany until 62 – 30 years – he collects about 40 pension points. In today’s money that is a statutory pension of roughly €1,700 gross a month; after health and long-term care insurance, around €1,500. His net salary today is about €3,700. The gap: more than €2,000 a month – before tax on the pension and before inflation.

Pension gap calculator for expats

Enter your year of birth, the year you started paying into the German system and your plans – the calculator shows your estimated statutory pension, your monthly gap and how much you would need to save.

Company pension (bAV): your employer pays part of it

With a company pension (Entgeltumwandlung), you convert part of your gross salary into pension contributions. Up to 8% of the contribution ceiling (€676 a month in 2026) is tax-free, and up to 4% (€338 a month) is also free of social security contributions. If your employer saves social security contributions as a result, they must add at least 15% on top.

Everyday examples

Situation	What it means
You convert €200 gross a month into a company pension	Your net salary drops by only around €95–€130, depending on your income
Your employer adds the mandatory 15% subsidy	€30 a month extra – €360 a year you would otherwise not get
You change employer	You can usually take the contract with you or keep it paid-up

Keep in mind: company pensions are taxed and – for publicly insured people – subject to health insurance contributions when paid out. Ask what your employer offers before you sign anything else.

Private pension and investing

ETF savings plan

A monthly savings plan into broadly diversified ETFs is the most flexible way to build wealth: low costs, available from €25 a month, and you can stop, pause or withdraw at any time – also if you leave Germany. Gains are subject to capital gains tax, but the first €1,000 a year per person (€2,000 for couples) is tax-free.

Everyday examples

Situation	Possible result
€200 a month for 30 years, assuming 6% average annual return	about €200,000 – from €72,000 paid in (before tax and costs)
The same €200, but starting 10 years later	about €92,000 – less than half
A stock market crash 2 years before retirement	your savings can drop 30% or more – shift to safer assets in time

Private pension insurance

Unit-linked private pension insurance (fondsgebundene Rentenversicherung) – often called a pension savings plan – invests in funds or ETFs like a savings plan, but inside an insurance contract. That changes how your gains are taxed and adds the option of a guaranteed lifelong pension. See the comparison below.

New from 2027: the state-subsidised pension depot

From 1 January 2027, the Altersvorsorgedepot replaces the old Riester pension. You invest in funds or ETFs, and the state adds bonuses to your own contributions – with an extra bonus for each child. Payouts start at retirement, as a lifelong pension or a payout plan. For employees with children it can become one of the most attractive options – calculate your subsidy here.

Real estate

Many expats think about buying a flat – to live in or as an investment. Property can be a strong part of retirement planning, but it ties up capital and is harder to sell if you leave Germany. More on our real estate page.

3 ways to invest in ETFs – and one saves you real tax

You can invest in exactly the same ETFs in three different ways: in your own depot, inside a pension insurance policy or inside a Basisrente (also called Rürup pension). The ETFs are the same – what differs is the tax, the costs and how flexible you are.

	ETF depot	ETF pension policy (fondsgebundene Rentenversicherung)	Basisrente (Rürup) with ETFs
Tax relief on contributions	No	No	Yes – deductible up to €30,826 a year in 2026 (single; employees minus their statutory pension contributions)
Tax while you save	Advance lump-sum tax (Vorabpauschale) every year	None	None
Switching funds or rebalancing	Every sale is taxed	Tax-free inside the contract	Tax-free inside the contract
How you get the money	Any time, any amount	Lump sum or lifelong pension	Only as a lifelong pension, from age 62
Tax on the payout	25% flat tax + solidarity surcharge on 70% of the gain	Lump sum from 62 after 12 years: 42.5% of the gain at your personal rate. Pension: only the income portion, e.g. 17% at 67	The pension is taxed at your personal rate: 84% of it if it starts in 2026, rising to 100% from 2058
Access before retirement	Yes	Possible, but cancelling early costs money	No
If you leave Germany	Depot can usually continue – check your bank	Contract continues; cash-out possible	Contract continues; pension can be paid abroad, no cash-out
If you die	Full value goes to your heirs	Value or guaranteed period goes to your heirs	Only as a survivor’s pension for spouse or children, if agreed
Costs	Usually very low	Higher – check the effective costs	Higher – check the effective costs

Calculate what you get with each of the three

Enter how much you can put aside each month, your tax rate today and in retirement and the usual costs. The calculator shows what you get from each of the three ways – as a lifelong pension or as a lump sum.

Example: €200 a month from your own pocket for 30 years, starting at 35, 6% ETF return before costs, costs of 0.2% (depot) and 1.0% (policy and Basisrente) a year, two fund switches, a 35% tax rate today and 25% in retirement. Net pension a month from 65: about €630 from the ETF depot, €600 from the ETF pension policy and €730 from the Basisrente.

Which one fits you?

• ETF depot: for flexible saving, shorter goals (a flat, a car, a move) and anyone who may need the money before retirement.
• ETF pension policy: for long-term retirement saving of 12 years or more, if you want a lifelong income, rebalancing without tax and the option of a lump sum.
• Basisrente: for people with a high tax rate today – especially self-employed people and high earners – who are sure the money is for retirement and want the tax refund now.
• A mix: many of our clients combine them – flexible money in the depot, retirement money in a policy or Basisrente.

If you leave Germany, the tax on payouts can depend on your new country of residence and the double taxation agreement. We explain the options for your situation – we do not provide tax advice.

Altersvorsorgedepot from 2027: the new state subsidy

From 2027, the state adds up to €540 a year plus up to €300 per child to your own pension savings in the new Altersvorsorgedepot. Find out in under a minute how much you would get – and what it means for you as an expat.

What happens to your German pension if you leave Germany?

• You keep your rights. Pension points you earned stay yours. If you have at least five years of contributions, the German pension can be paid to you abroad.
• EU, EEA, Switzerland and agreement countries: Germany has social security agreements with many countries, for example the USA, Canada, India, Japan, South Korea and Turkey. Periods in these countries can count towards the five-year minimum.
• Refund of contributions: in some cases – depending on your nationality, where you live and how long you paid – you can apply for a refund of your own contributions, at the earliest 24 months after leaving the German system. A refund ends all German pension rights, so check carefully with the Deutsche Rentenversicherung first.
• Company and private pensions: most contracts continue when you move – but tax rules differ by country. Clarify this before you leave.

Pension for expats in Germany – how we help

We calculate your personal pension gap, explain your German pension statement (Renteninformation) in English and show you which mix of company pension, investing and insurance fits your plans – whether you stay for five years or for good.

Book a free call

Frequently asked questions

How much pension will I get in Germany?

Roughly: every year at the average German salary gives you one pension point, worth €42.52 a month (from July 2026). Your annual pension statement (Renteninformation), which you receive from age 27 after five years of contributions, shows your personal forecast.

Can I get my German pension contributions refunded when I leave?

Sometimes. Depending on your nationality, your new country of residence and how long you paid in, you may be able to apply for a refund of your own share of the contributions – at the earliest 24 months after leaving. If you have paid for five years or more, or move to an EU or agreement country, a refund is usually not possible, but your pension rights remain.

Is a company pension worth it for expats?

Usually yes, because of the tax and social security savings and the employer subsidy. If you plan to stay only a few years, check how the contract can be continued or paid out after you leave.

What are the ways to invest in ETFs in Germany?

Three: in your own ETF depot, inside an ETF pension insurance policy or inside a Basisrente (Rürup pension). The depot is the most flexible and cheapest; the policy lets you switch funds tax-free and pays a lifelong pension; the Basisrente gives you a tax refund on your contributions today but pays only as a lifelong pension from 62.

Is the Basisrente (Rürup pension) worth it for expats?

It can be if your tax rate is high today and you are sure the money is for retirement: contributions are tax-deductible, so more money works for you. But it cannot be cashed out – not even when you leave Germany – and the pension is taxed almost in full later. The pension can be paid abroad.

What is the Altersvorsorgedepot?

A new state-subsidised retirement depot in Germany, available from 1 January 2027 and replacing the Riester pension for new contracts. You invest in funds or ETFs; the state adds up to €540 a year plus up to €300 per child, and contributions are tax-deductible. The money is paid out from age 65 at the earliest.

Can expats open an Altersvorsorgedepot?

Yes, if you are in the German statutory pension system as an employee, a civil servant, or – under the new rules – self-employed. Your nationality does not matter. If you plan to leave Germany, talk to us first: subsidies stop after you move and may have to be repaid in some cases.

What is the retirement age in Germany?

The regular retirement age is gradually rising to 67 and applies in full to everyone born in 1964 or later. Earlier retirement is possible with deductions.