Public Pension in Germany: Everything You Need to Know About it

Germany's Public Pension: A General Overview

Is the State Pension Mandatory? 

Do you live in Germany and work as an employee? Then you are compulsorily insured in the German state pension plan as virtually all employed people in Germany have to pay into the public pension system, known as the 'Gesetzliche Rentenversicherung', or GRV for short.

If you are not an employee, you are generally not enrolled and will also not build up a pension. See below for the voluntary contributions you can make in that case.

What Is the Retirement Age in Germany?

The standard retirement pension age is now 66 plus two months, and it will gradually increase to 67 by 2029. So when you’re born after 1964, you will have to work until the age of 67 to get the full German state pension without deductions.

With longevity increasing gradually, we expect the normal retirement age to increase by about one year per decade. Therefore, if you are 30 now, you can expect the public pension to be available at about the age of 70.

What Is The Average State Pension in Germany in 2025?

The average gross public pension in Germany is about 1.102 € per month. For men, it was 1.431 €, and for women, just 930 €. These are figures for 2023 from the Deutsche Rentenversicherung. 

In the meantime, average pensions should have grown another 8,5 % as the value of the pension points has increased that much.

In 2025 the average state pension can, therefore, be estimated at about 1.200 € per month.

How Long Do I Need to Work Before I Get a State Pension in Germany?

To be entitled to a state pension, you must work in Germany for at least 5 years and pay into the public pension. If you do not meet this required minimum qualification period ('Mindestversicherungszeit' in German), you can seek a refund for your pension or contribute voluntarily.

To qualify for the five-year minimum, you can count the years that you contributed to (or otherwise qualified for) the official pension systems in all EU countries and those with a social security agreement with Germany. The official statement from the German pension fund is in this regard: “All insurance periods which you have completed in other member states and which do not overlap with German periods will be taken into account.” In a few cases, when you are young, and you move to some countries outside the EU and are not a German citizen, it could be worth requesting a refund and investing it yourself.

How Much Is The Basic State Pension In Germany?

Your pension is determined foremost by the number of pension points, known in German as 'Rentenpunkte' or 'Entgeltpunkte', you have collected. For every year of average income contribution, currently 51.944 €, you earn one point. If you earn less, you will receive proportionally fewer points, and if you earn more, you will get proportionally more pension points. Accruing pension points does have a maximum limit, which in 2026 is 1,95 points, at a salary of currently 101.400 €.

To calculate your basic German state pension, you must multiply these pension points by the current pension value or 'aktueller Rentenwert', which is currently 40,79 € in Germany. So when you pay for 30 years the maximum contribution and collect 59 points, you will earn a maximum pension of 2.385,22 € per month. Your personal tax rate is then deducted from this pension.

Then there is the so-called entry factor or “Zugangsfaktor.” In essence, this number is 1. But if you retire early, it will be adjusted down (0,3 % per month), and if you retire later, it will be adjusted by 0,5 %. Each month, you do not receive a pension after reaching the standard retirement age.

How Much Is The State Pension In Germany After 5 Years of Work?

If you earn 50.000 € gross annually, your German state pension will be about 200 € gross each month.  If you earn the maximum of 101.400 € or more, your monthly state pension will be about 400 €. If you work for a salary like that for 10 years, your pension will double to 400 € respectively 800 € per month.

What Is The Minimum Pension in Germany?

Alas, there is no minimum public pension. However, if you have no other sources of income and virtually no assets, less than 10.000 € in value per person, Germany does provide a so-called Grundsicherung or minimum existence income. This can cover the cost of living, including rent. Therefore, you can count on this as the ultimate safety net, but not for a normal retirement plan. In a normal retirement plan, you have assets like a car and ideally your own home, and other sources of income. You would have to sell most of these assets, while most of your other income would be deducted before you receive such a Grundsicherung. For more details, see here.

Will My Public Pension in Germany Keep up With Inflation and General Wealth Trends?

If you ask whether your public pension will grow with the general inflation, the answer is Yes! As the public pensions in Germany are paid by those working, the contributions to the system and the potential payout automatically increase with the average wages. Since average salaries grow faster than inflation, pensions should be able to keep up with inflation. In 2025, for example, the pension adjustment will be a solid 3,74 %.

However, this also means that if the population buildup worsens as fewer young working people pay for more pension-receiving retired, then the economics of the public pension system deteriorates. Wages typically rise about 1 % faster than inflation, but we expect this space to be used to offset the worsening economics of the public pension system.

The bottom line: We expect that, as a result, pensions will keep up with inflation but not with the general living standard.

Where Do I Find the Number of Points I Have Already Earned?

Every insured person who is at least 27 years old and has already paid into the German pension insurance scheme for five years is sent their official pension information (known as 'Renteninformation' in German) by mail annually. This information has circled each noteworthy piece of information you receive. Unfortunately, this overview is only available in German.

It includes:

1. The earliest date you can begin receiving your pension

2. Your pension amount if you received a full disabled pension

3. Your current entitlement to an old-age pension

4. Your projected pension entitlement if you were to continue earning the same amount as you do now, and

5. Your pension if you would receive an annual increase of 1 % or 2 %

Please note: the values given in the pension information are static estimates based on today's figures. In reality, your pension may develop quite differently!

Our Pension Point Calculator shows how many points you have already accumulated

Can I Make Voluntary Contributions and Increase my German State Pension?

Even if you are not compulsorily insured in the public pension, you can pay in voluntary contributions if you are older than 16 years and if one or more of the following points apply to you:

• You are self-employed or a freelancer (note that registered craftsman and self-employed with one client are already compulsorily insured)

• You are a German citizen living abroad

• You are an adult with either an unpaid job (i.e., child-raising) or one that pays too little for the insurance contributions threshold, or

• You are a resident of the EU (including citizens and non-nationals) or countries with social security agreements with Germany, and you have made at least one contribution to the German public pension system.

If you are part of this group, you can buy pension entitlement points by making special contributions. So all employed are excluded from this option, as they have to be insured in the public pension, unless they want to retire early--see below--as they can compensate for that with extra contributions.

As a voluntary contributor, you can determine the number of months you contribute (1-12), and the amount, provided that it is between the maximum and minimum amounts that apply for the month. In 2026, the minimum contribution is 112,16 €, and the maximum is 1.571,10 €. You can change your contributions from one period to the next--but you have to fill in a form to affect this.

Keep in mind that the more you pay, the more points you earn. Paying the maximum amount for 12 months earns you about 2 points.

Tip: If you are close to retirement age, say 55, it can make a lot of sense to contribute voluntarily to the state pension system. For those who live long (e.g., educated women) and those who are not good at investing, you should consider starting this at an earlier age.

Self-employed individuals can voluntarily choose compulsory insurance.

If you do not belong to the self-employed group that is compulsorily insured* in the public pension system, you can opt to voluntarily enroll in this mandatory insurance ('freiwillige Pflichtversicherung'). However, the decision should be well-considered because once you are enrolled, the voluntary mandatory insurance is irrevocable.

You can choose between a fixed fee (standard contribution) or an income-dependent one. The standard contribution fee is 735,63 € per month. You can also opt for half this fee within the first three calendar years after the year you start to work self-employed.

When you opt for the income-dependent contribution, you pay 18,6 % of your gross income in your last income tax assessment. In 2026, the minimum contribution is 112,16 €, and the maximum is 1.571,10 €.

Tip: If you are self-employed and have modest assets, the public pension may be a much better solution than the guaranteed insurance products on offer. Especially later in life (over 55), it can be worth it. The benefits of the public pension are that it pays you an income for your entire retired life, grows more or less with inflation, and incurs no investment cost! A private pension plan invested in a good mix of ETFs is a superior long-term alternative, especially for those starting earlier or having larger financial cushions.

* excluding craftsmen and home tradesmen, teachers, midwives, educators, persons employed in nursing, artists, and publicists, self-employed persons with one client, maritime pilots, and coastal boatmen and fishermen — these are compulsorily insured in their employers' liability insurance association.

Do I Get Extra Pension for a Child in Germany?

Parents with young children often work less, as at least one parent usually stays home for some time. To compensate for this circumstance, pension points can also be collected for parental leave:

You can earn half a pension point per child per half a year for up to 3 years if the child was born after 1992, and 2,5 if they were born before then. In principle, the points accrue to the mother, but parents can declare together that they should go to the father. For three kids, you can collect 9 points, which is quite substantial, for four kids it is 12 points etc.. You can only collect the points when the kids are raised in Germany and during the first 3 years. If you have two children in a 3-year period, then the period for the youngest child is extended by the overlap. For example, if child 2 was born exactly 2 years after the first child, you can claim points for child 1 in years 1, 2, and 3 and for the second child in years 4, 5, and 6.

The points can also be allotted to grandparents, provided they don't already receive a pension. As the German public pension system does not usually know you are raising a child, you must report this yourself.

You can also collect the points when working, but only up to the maximum you can earn each year (about 2).

For details, see this official brochure.

Do I Pay Tax and Social Security Contributions on My German State Pension?

We already mentioned it at the beginning: your personal income tax is deducted from your public pension. Your tax rate in retirement will be different from that during your employment:

Your taxes, including your tax class, are determined by your personal circumstances. Are you single, married, divorced, or widowed? Does your partner have an income? Do you have children? These factors determine your tax class and, thus, your personal taxation.

The following two sample calculations indicate that this can make a significant difference:

Can I Retire Early in Germany and Still Receive a State Pension?

Of course, no one can force you to work until the standard retirement age of 67. You can retire earlier, but you must accept cuts in your statutory pension. Only if you have paid into the public pension system for at least 45 years, you will receive a full pension at 63.

If you have contributed for at least 35 years, then you can retire early at 63, with deductions. Every month you intend to retire earlier costs a deduction of 0,3 percent on your monthly pension. To avoid this, you can make special payments before the official start of your pension from the age of 50. It makes sense to spread the special payments over several years to avoid exceeding your tax deduction limits.

So if your life expectancy (at 67) is the current average of 87, then you cut your pension for 20 years by 3,6 % to earn one year of pension. The break-even point between deciding on early retirement using your public pension option or not is a growth rate of 2,9 % in the public pension. In other words, if your public pension grows 2,9 % per year for 20 years, it returns you the same amount as your extra year of early retirement pension. The shorter your life expectancy, the more sense it makes to go for the early retirement option financially.

Close your pension gap with the Pensionfriend Pension Plan

When I Can No Longer Work: Disability Pension in Germany

Unfortunately, not everyone is fortunate enough to stay healthy and able to work until they reach retirement age. Suppose you can no longer work due to an accident or illness. In that case, in Germany, you are entitled to a disability pension (called 'Erwerbsminderungsrente' in German or short: 'EU-Rente'), which is proportional to the regular pension that you have built up. So, if you have already built up a nice entitlement to a state pension, you could rely on a state disability pension; otherwise, you cannot.

If you can only work three hours or less per day, you will receive a full disability pension. And if you can work between three and six hours per day, you will receive a partial disability pension, half of the entire disability pension. Your ability to work will be checked with medical records and attempted rehabilitation before pensions are given.

Note: This check is only about a general ability to work, not whether you can continue in your current job. You may be forced to take a job in a different field where you can still work.

You must have been insured with the public pension for five years of your life (these 5 years do not need to be contiguous) and paid pension insurance for 3 out of the last 5 years before the illness or disability request. In addition, you must be under the regular retirement age to be entitled to such a pension. 

The amount of the state disability pension depends on your normal state pension entitlement. Your pension amount is multiplied by 0,5 if you have a partial disability pension and by 1 if you have a full disability pension. This factor is called the pension factor or 'Rentenfaktor' when calculating your pension amount.

If you are young or have not yet spent much time working in Germany, you will not have been able to accumulate many pension points. In this case, your disability pension will be increased by the so-called additional calculation period (called 'Zurechnungszeit' in German). Therefore, the German pension insurance calculates the average value of your previous contributions from the beginning of your incapacity to work until you reach the regular retirement age. The fictitious pension points calculated in this way are then added to the calculation of your disability pension.

However, in most cases, the reduced earning capacity pension is insufficient to cover essential living expenses. On average, it currently amounts to only 830 €! It is, therefore, advisable to take out additional private insurance.

See this official page for more information.

How Much is the Widow(er)'s Pension in Germany?

In Germany, there is also a widow(er)'s pension linked to the state pension you have built up. For younger people, this is quite insufficient, especially if you have children, and absolutely when there is just one income earner. Therefore, in these cases, you need to consider additional coverage by private life insurance. This is available at a low cost. See here for an article that provides insight into the size and cost of the insurance.

In old age, this widow(er)’s pension can be helpful, especially because many women have a relatively low state pension.

In principle, you are entitled to the widow(er)'s pension if you are still married to your spouse when they died. You would have to be married for at least one year unless your spouse died in a sudden accident. Your partner must also have paid for at least 5 years into their pension insurance.

Note: Whether you lived together or separately is irrelevant. But if you were only engaged, lived together without marriage, or were only married religiously in Germany, you would not be entitled to a widow(er)'s pension.

There are two types of pension for a widow(er): the small and the large pension.

• You receive a small pension if you are younger than 47, and you are neither disabled nor without a child. The widow(er) receives 25 % of the deceased spouse's built-up pension for up to 24 months after death.

• You are entitled to a large pension if you are either older than 47, disabled, or raising a child, either on your own or a child of the deceased who is younger than 18 years old (unless they are disabled, in which case their age is irrelevant). The widow(er) is, in this case, entitled to receive 55 % of their deceased spouse's pension until they die.

What Happens to My Pension When I am Unemployed?

Even with suitable qualifications and high motivation, it can still happen that you are unemployed for a certain period of time. In this case, in Germany, you will not only receive unemployment benefits (if you meet the requirements), but you can also continue to earn pension points.

If you have paid at least 12 months into unemployment insurance within the past 30 months, and you, on this basis, receive the so-called unemployment benefit, you accrue pension points based on 80 % of the gross salary you earned in the last 12 months. If you seek employment within Germany, you receive these benefits for up to 6 months. In contrast, if you are seeking a job in another EU member state, these benefits last up to 3 months after you become unemployed.

If you have contributed compulsorily for a longer time during the 5 years before claiming unemployment benefits, you could get these benefits for longer. However, how long you get such benefits also depends on your age:

If you can work and are unemployed but are not entitled to the normal unemployment benefits, also referred to as unemployment benefit type I, you can apply for unemployment benefit type II. In other countries, this would be called social welfare. It is “means-tested,” in this case, however, you do not accrue any points toward a pension.

For details, see this official brochure.

Do I Get Pension Rights for Studying, Mini, or Temporary Jobs

For any job that lasts more than 3 months, including a mini job and student jobs, you accrue pension rights commensurate to your income. If your employment started as a shorter-term one but is extended, it will still be treated as a longer-term job, and pension rights accrue. There are no longer any special exemptions for students: i.e., studying does not earn you pension points.

For more information, see this official website.