Germany Pension Calculator
Project your German retirement savings. Compare gesetzliche Rentenversicherung, Rürup (Basisrente), and Riester with compound growth and tax-deduction context.
Details
Result
Pension Pot at Retirement
€635,098
Total Contributions
€178,600
Investment Growth
€456,498
Years of Compounding
32
The three pillars of German retirement
Pillar 1 — gesetzliche Rentenversicherung (18.6% split employer/employee, capped at €96,600 income). Pays a point-based statutory pension. Net replacement rate is ~48%, far below what most retirees need. Pillar 2 — betriebliche Altersvorsorge (bAV), typically a Direktversicherung through your employer. Pillar 3 — private: Rürup (Basisrente) for self-employed & high earners; Riester for employees with kids.
Rürup vs Riester
Rürup (Basisrente): contributions up to €29,344 (single, 2026) fully deductible as Sonderausgaben. No lump sum ever — only a lifelong annuity. Best for self-employed & high earners. Riester: €2,100/yr max, smaller cap but with state Zulagen (€175/adult + €300/kid). Best for employees with children. ETF-Riester via Fairr / Sutor / DWS Premium Rente is the most efficient variant.
Tax on payout
Germany runs a deferred-taxation model (Kohortenprinzip). If you retired in 2023, 83% of statutory pension is taxable at your personal rate. For 2026 retirees: 86%. Reaches 100% by 2058. Rürup payouts follow the same cohort schedule. Riester withdrawals are 100% taxable. ETF-Depot gains (outside pension wrappers) are taxed at 25% Abgeltungsteuer + Soli flat.
What return should I expect?
Long-term equity returns (MSCI World, FTSE All-World) have averaged 7-8% nominal after fees. A Riester ETF-Sparplan inside the wrapper gets the state Zulagen on top. Bond-heavy classic Riester versions return 2-4% and are usually worse than simply doing ETF Sparplan in a Depot for higher earners.
Frequently Asked Questions
Everything you need to know, in one place.
Three pillars of German retirement?
Pillar 1 — gesetzliche Rentenversicherung (statutory, mandatory for employees, 18.6% split): pays a points-based pension. Pillar 2 — betriebliche Altersvorsorge (employer pension, often via Direktversicherung). Pillar 3 — private (Rürup/Basisrente fully tax-deductible up to €29,344 in 2026 for singles; Riester with state match for employees with kids).
Rürup vs Riester?
Rürup (Basisrente) suits self-employed & high earners — up to €29,344 (2026) fully deductible, but paid out as a lifelong annuity only (no lump sum). Riester suits employees with kids — smaller €2,100/year cap but state Zulagen (€175 adult, €300/kid) sweeten the deal. ETF-Riester contracts are the most cost-effective.
Will the gesetzliche Rente be enough?
Net replacement rate is ~48% of pre-retirement earnings after 45 years of full contributions — far below most people need. The government and every mainstream retirement calculator (including Deutsche Rentenversicherung's own) advise supplementing with Pillar 2 and 3. Start early.
How much tax do I pay on pension income?
Statutory pension is progressively taxed: if you retired in 2023, 83% of it is taxable; retiring in 2026, 86%. Reaches 100% by 2058. Rürup payouts also rise to 100% taxable by 2058. Riester withdrawals are fully taxable on disbursement (deferred-taxation model).
What is betriebliche Altersvorsorge (bAV)?
Employer pension — Pillar 2. Five legal structures: Direktversicherung (most common, insurance contract), Pensionskasse, Pensionsfonds, Unterstützungskasse, Direktzusage. Employees can convert up to 8% of the Beitragsbemessungsgrenze West (~€7,728/year in 2026) from gross salary tax-free and social-contribution-free. Employers must add a 15% subsidy on employee contributions. Downside: taxed in full and subject to GKV health insurance on withdrawal — so best suited to employees whose marginal rate will be lower in retirement.
When can I retire in Germany?
Regelaltersrente: age 67 for those born 1964 or later (rising from 65 for earlier cohorts). Early retirement at 63 with 35 years of contributions incurs 0.3% reduction per month before Regelaltersalter (up to 14.4%). "Rente mit 63 ohne Abschläge" requires 45 years of contribution (particularly long-insured). Normal full state pension requires 35 contribution years; the minimum to claim any pension is 5 years. Deferred retirement (past 67) increases the pension by 0.5% per month.
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