All about this insurance: Private pension
Should I take out a German private pension if I might leave Germany?
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How much state pension will I get in Germany?
In short
Your German state pension (gesetzliche Rente) is your pension points times the pension value. Since July 2026 one point is worth EUR 42.52 a month. Someone who earns exactly the average for 45 years gets around EUR 1,913 gross; after health and care contributions about EUR 1,700 remain, often before tax.
What it costs
Guide figures based on the official 2026 values, gross pension before deductions.
| Example | Typical range |
|---|---|
| Average earner, 45 years | about EUR 1,913 gross a month |
| Average earner, 40 years | about EUR 1,700 gross a month |
| 70 percent of average, 40 years | about EUR 1,190 gross a month |
| After health and care contributions | about 11 to 12 percent less |
Calculated values as of September 2026. The deduction for health and care contributions is a guide value from our practice and depends on the health insurer and the number of children. Your exact figure is in your pension statement.
Worked example
Employee, 38 years of work, mostly 90 percent of average pay
How to estimate your pension yourself before talking about private provision.
| Pension points (38 × 0.9) | 34.2 |
| Gross pension (34.2 × EUR 42.52) | about EUR 1,454 |
| Health and care contributions, around 11.5 percent | about EUR 167 |
| Net pension before tax | about EUR 1,287 |
With a last net salary of EUR 2,400 and a need of 75 percent, around EUR 510 a month are missing, in today's money.
How the pension insurance calculates
Every year in which you earn exactly the average salary brings one pension point (Entgeltpunkt). Half the average brings half a point, double brings two points, capped by the contribution ceiling.
The points from all years are added up and multiplied by the current pension value. Raising children, caring for relatives and education can bring extra points.
| Pension points | Gross pension a month (value EUR 42.52) |
|---|---|
| 25 | about EUR 1,063 |
| 35 | about EUR 1,488 |
| 45 | about EUR 1,913 |
| 55 | about EUR 2,339 |
What it means if you came to Germany later
Most expats will not reach 45 years in Germany, so their German pension is small on its own. You need at least five years of contributions to receive a German pension at all. Periods in other EU countries, and in countries with a social security agreement with Germany, can often count towards that minimum, but each country pays only for its own years.
A German pension can usually be paid to you abroad if you leave. If you are from a country outside the EU without such an agreement and leave before five years, you may be able to have your own contributions refunded after a waiting time. Ask the German pension insurance (Deutsche Rentenversicherung) before you decide.
What comes off the gross amount
Pensioners pay half the general health insurance rate, half the additional contribution and the full long-term care contribution. Together that is roughly 11 to 12 percent.
Income tax comes on top if your taxable share plus other income exceeds the basic tax allowance. Anyone retiring in 2026 pays tax on a large part of the pension.
Assess the gap honestly
The pension statement shows a projection without inflation. If prices rise until you retire, the same amount will then be worth less.
As a rough guide, many people need 70 to 80 percent of their last net income in retirement. The difference to your net pension is your pension gap. Add pensions you have from your home country to the calculation.
When you do not need a private pension
If you own a paid off home, have a good company pension or substantial savings, you often manage without another contract. Calculate first, then sign up.
Step by step
- Find your pension statement or request one from the pension insurance.
- Have missing periods such as education or child raising clarified.
- If you worked abroad, ask how those periods count.
- Reduce the gross pension by health and care contributions.
- Set your need: 70 to 80 percent of today's net income.
- Plan private provision only for the gap that remains.
Checklist
- Current pension statement at hand
- Insurance record complete
- Periods abroad clarified
- Health and care deductions included
- Tax on the pension roughly estimated
- Company pension, savings and home country pensions listed
Common mistakes
- Treating the gross pension in the statement as money you can spend
- Leaving gaps in the insurance record unresolved until proof is lost
- Signing a pension contract before the gap has been calculated
Questions and answers
Frequently asked
How much pension do I get on EUR 3,000 gross a month?
It depends on the average salary of each year. If it is around EUR 50,000, EUR 36,000 a year brings about 0.72 points. After 40 years that is around EUR 1,225 gross a month.
Where can I see my expected pension?
In the pension statement you receive every year from age 27, or in your online account with the pension insurance.
Do I pay tax on my pension?
Possibly. Part of the pension is taxable, and with other income you quickly exceed the basic allowance.
Does my pension rise every year?
Usually yes, on 1 July. In 2026 the pension value rose by 4.24 percent. The size of the increase is not guaranteed.
How many pension points do I have?
The total is in your pension statement. One year at average pay brings one point.
Is a private pension worth it then?
Only if a real gap remains. If you can close it with a company pension or savings, you do not need another contract.
Sources
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