The German pension explained: what you pay in and what you get

2 min read · 7 steps · Updated 2 October 2026

The pension contribution is the largest deduction on a German payslip, and for newcomers it raises two questions: what do I get for it, and what happens to the money if I leave? The German Pension Insurance (Deutsche Rentenversicherung) answers both for your own record, free of charge.

Rules, amounts and deadlines change. Check the official source named at the end before you act, and ask the office in your city, because procedures differ from town to town.

Step by step

1. Know what is deducted

   The rate is 18.6 percent of gross pay, split equally between you and your employer. The months are recorded under your social security number. See your German payslip explained: taxes and deductions in 2026.

   Done

2. Understand pension points

   For each year you earn exactly the average income of all insured people, 51,944 euros in 2026, you get one pension point. Half the average gives half a point. One point is worth 42.52 euros of pension a month from July 2026. Years of bringing up small children and of caring for relatives also give points.

   Done

3. Reach the minimum period

   You need at least five years of contributions (60 months) for an old-age pension. The same 60 months count for a settlement permit.

   Done

4. Know the retirement age

   For people born in 1964 or later, the standard age is 67. Earlier retirement is possible after very long careers or with deductions.

   Done

5. Add up periods from other countries

   Periods in EU countries, and in countries that have a social security agreement with Germany, are added together to reach the minimum period. Each country then pays its own share. The list of agreement countries is on deutsche-rentenversicherung.de.

   Done

6. Read the yearly letter

   From the age of 27, once you have five years of contributions, you receive a pension information letter every year with the pension reached so far and a forecast. Check that no periods are missing. You can ask for your full record (Versicherungsverlauf) at any time.

   Done

7. Before you leave Germany, get advice

   The pension can be paid abroad, but for a permanent move outside the EU it may be reduced in some cases. People who leave before reaching five years can, under certain conditions, apply for a refund of their own contributions after a waiting period of 24 months. A refund wipes out all claims, including the employer's half, so compare both options at a counselling centre of the pension insurance first.

   Done

Good to know

The statutory pension alone replaces well under half of an average wage. Company pensions and private saving are the usual additions.

If the pension is too small to live on, basic income support in old age (Grundsicherung im Alter) tops it up.

Mini-jobbers pay a small pension contribution by default and can opt out: minimum wage and mini-jobs in Germany in 2026.

Why the 60 months matter for your status: permanent residence in Germany: when you can apply.

In short: 9.3 percent each from you and the employer, pension points by income, five years minimum, age 67, foreign periods count with agreements, yearly letter, advice before leaving.