Calculate your retirement plan
A retirement plan turns a vague worry into a number: how much you will likely need in retirement, what the German state pension will realistically provide, and how large the gap is that private saving must close. For expats this calculation is more delicate than for lifelong residents, because years spent working in different countries, gaps in German contributions, and inflation over decades can all erode the eventual payout. The German statutory pension targets a replacement level of around 48% of average earnings, but only for someone with a long, full contribution history, so most expats face a meaningful shortfall. The point of planning now is to quantify that gap while you still have years of compounding ahead to fill it.
What the state pension really delivers
Germany's statutory pension (gesetzliche Rentenversicherung) is a pay-as-you-go system. The headline pension level (Rentenniveau) is roughly 48% and is politically protected at that level until 2031, but this figure describes a standardised worker with about 45 years of average-wage contributions. The standard retirement age is rising to 67 for those born from 1964 onward.
Crucially, you need at least five years of qualifying contributions (the Wartezeit, or minimum vesting period) to receive any German pension at all. Periods worked in other EU/EEA countries or Switzerland can be aggregated toward this five-year threshold under EU coordination rules (Regulation 883/2004), but each country then pays only the slice that corresponds to the years you contributed there. The practical takeaway: arriving mid-career almost guarantees fewer than 45 contribution years in Germany, so your statutory pension will be well below that 48% benchmark.
Projecting the gap
Start from your target income in retirement, often estimated at 70% to 80% of your final working income to maintain your lifestyle. From that, subtract the income you can reasonably expect from all guaranteed sources: the German statutory pension, any company pension (betriebliche Altersvorsorge), pensions accrued in other countries, and any state benefits you remain entitled to. What remains is the gap that your private savings and investments must cover.
The Deutsche Rentenversicherung sends an annual Renteninformation letter estimating your future statutory pension once you have at least five contribution years and are over 27. Treat its projected figure as today's purchasing power, and remember it is a gross figure from which health and long-term-care contributions and possibly tax will still be deducted. You can request a full account clarification (Kontenklaerung) to make sure all your German contribution periods, and any foreign ones, are correctly recorded.
Years abroad and inflation
Two forces specifically hurt expats. First, fragmented careers: time spent outside Germany, or in self-employment without contributions, reduces your German pension entitlement and can leave coordination gaps between national systems. Mapping out exactly which years counted where, and in which system any private pension sits, is essential to an accurate projection.
Second, inflation. A gap that looks manageable in today's euros grows substantially over 20 or 30 years. At 2% annual inflation, prices roughly double in about 35 years, so a target income must be inflated to the year you actually retire, and your savings should be invested for real (above-inflation) growth rather than left in low-interest cash. Run the plan in today's money but stress-test it against higher inflation and a longer-than-expected lifespan.
Filling the gap
The gap is closed with private provision: broadly that means long-horizon investing (for example an ETF portfolio), private pension or insurance products, and where relevant employer schemes or, for eligible earners, Riester or Ruerup contracts with their tax advantages. The right mix depends on your tax situation, how long you intend to stay in Germany, and where you expect to retire.
The single most powerful lever is time. Because returns compound, money invested in your thirties does far more work than the same amount invested in your fifties. Even a rough plan started now beats a perfect plan started in ten years, so the goal of this step is to produce a concrete monthly savings figure and begin, then refine it annually.
- 1Estimate your desired annual retirement income, typically 70% to 80% of final working income.
- 2Request your Renteninformation and, if useful, a Kontenklaerung from the Deutsche Rentenversicherung.
- 3List all expected guaranteed income: German pension, foreign pensions, company and state schemes.
- 4Subtract guaranteed income from your target to find the annual gap in today's euros.
- 5Adjust the gap for inflation to your actual retirement year and for a long life expectancy.
- 6Translate the inflated gap into a required monthly savings amount given a realistic return assumption.
- 7Set up the contributions, then review and recalculate the plan once a year as circumstances change.
A tecis advisor can model the gap between your expected state pension and your retirement needs, factoring in your years abroad and inflation, and propose a combination of products to close it. This helps if you want a written projection and a clear monthly target rather than a guess.
- Deutsche Rentenversicherung - English information
- EU - state pensions abroad (aggregation)
- Federal Government - 2025 pension package (48% level)
- Make it in Germany - pensions and social security
- OECD - Pensions at a Glance 2025, Germany
General information for expats in Germany, not individual advice. Rules and figures change; verify against the official sources above and your own situation.