Public pension in Germany: Everything you need to know about it
Ever wondered how Germany's public pension works? We answer all your questions on this topic!
Dr. Chris Mulder
Published on Nov 25, 2022 . Updated a month ago
Germany's public pension is not enough to provide you with a comfortable living in old age. It should be seen as a minimum pension. In practice, it leaves many without an adequate minimum pension, especially women who worked part of the time, self-employed persons, and those who arrived late in life in Germany.
The key points
Germany's public pension or GRV is a minimum pension that can be more generous than minimum pensions you find in other countries, but only for those who work and have been able to make close to maximum contributions.
Those who have only contributed partially during their life (e.g. stay-at-home moms or dads, late-in-life arrivers in Germany, those in part-time jobs) will not have been able to contribute enough for a basic minimum pension.
Due to the aging of the population, the GRV will not keep up with growing living standards and an adequate old-age pension will fall back on the order of 35 % over the coming 20 years, and 40 % over the coming 40 years.
It is imperative therefore to plan early for an adequate financial future.
Table of Contents
- Germany's public pension: a general overview
- How much will my public pension be in Germany?
- Voluntary contributions to the German public pension
- Pension points for parents
- When you can no longer work: Disability pension rights
- Tax and social security contributions on your state pension
- Can I retire early and still draw my public pension?
