German Pension System Explained: For Expats by Expats in Germany

[@DavidReinhardInVertas]

In Germany, investing for your retirement and taking care of your pension yourself is so important. When you have a good advisor you can even save a lot of taxes in the process, made a video on that recently.

[@pensionfriendDE]

Yes, you do and that's why we're here to help :)

[@kostaskostas6224]

So with 20 years of work you would probably get about 300 euros which is ugly. Quite surprising for such a country.

[@fxbx1312]

Not quite. It depends on what you have earned in those 20 years. If you earned the average of all Germans in all years you get 20 Entgeltpunkte („earning points“). So let’s say this was the case here: you would then have 20 multiplicated with the actual pension value (= 2022: 36,02€). Your pension would be 720,4€ - mandatory health insurance = ~670€ net Most people work 30-40 years though, so they‘d then have around 1000€ of monthly pension - health insurance = 920€ net which was also about the average pension in Germany in 2022. keep in mind that for example Times of raising your children also gives you around 3 „Earning Points“ per child. School/University after 17th birthday is also valued, etc. The pension will automatically increase when the new pension value is decided in the federal diet (1st of July every year). You’re right though, many people still get too little for the work they’ve done. That’s why there are not only this, but three pillars of the pension system in Germany. That’s why people with many contribution years can leave without deduction at age 62 (and many people actually do this) You can also get a higher pension if you are eligible for the „Grundrente“. For guaranteeing a minimum pension consensus would be necessary that either: 1) rich people pay higher contributions by increasing the income threshold 2) the contributions are raised in general 3) the age of retirement is increased or 4) the federal state pays more direct subventions (tax money as well) There is no political consensus for any of that and that’s why that’s all you’ll get (which is still more than in most countries on this planet).

[@asquarraybrahim6640]

Good luck

[@lukemccandless4314]

Don’t move to Germany. Got it.

[@wanderonwards]

It ain’t so bad here lol