Estimate your German statutory pension (gesetzliche Rente) based on salary, contribution years, and planned retirement age.
Your pension covers 49% of your current net income. Consider closing the pension gap of 1.338,82 €/month through private pension savings (Riester, company pension, private investments).
How are Entgeltpunkte (pension points) calculated?
Each year, you earn Entgeltpunkte (EP) based on your gross salary relative to the national average salary (Durchschnittsentgelt, approximately EUR 45,358 in 2025). If you earn exactly the average, you get 1.0 EP. If you earn twice the average, you get 2.0 EP. The maximum is capped at the pension contribution ceiling (EUR 96,600/year), which gives approximately 2.13 EP per year.
What is the Rentenwert and how does it change?
The Rentenwert (pension value) is the monthly pension you receive for each Entgeltpunkt. As of July 2024, it is EUR 39.32 (unified for East and West Germany). The Rentenwert is adjusted annually based on wage growth, contribution rates, and a sustainability factor. It typically increases each year, though the exact amount varies.
How does early or late retirement affect my pension?
Early retirement (before 67) reduces your pension by 0.3% per month, up to a maximum of 14.4% (48 months early). You typically need 35 years of contributions to retire at 63. Late retirement (after 67) increases your pension by 0.5% per month with no upper limit. Each year you work beyond 67 adds both the late bonus AND additional Entgeltpunkte from continued contributions.
What is the Rentenluecke (pension gap)?
The Rentenluecke (pension gap) is the difference between your current net income and your expected statutory pension. For an average earner with 35 years of contributions, the pension typically replaces only 45-50% of net income. The gap should be filled with private pension savings (Riester, betriebliche Altersvorsorge, private investments) to maintain your living standard in retirement.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
State pension, company pensions, and private retirement savings
How much state pension will you receive?
The average state pension (gesetzliche Rente) in Germany is about €1,550 per month for men and €1,050 for women in 2025. Your pension depends on how many Entgeltpunkte (earnings points) you collected. One point equals one year of average-salary contributions (about €45,358 in 2025). After 45 years at average salary, you receive about €1,800 per month before tax.
When can you retire?
The standard retirement age is gradually rising to 67 by 2031. If you were born in 1964 or later, your retirement age is 67. You can retire at 63 with 35 years of contributions but face a 0.3% reduction for each month early (up to 14.4% if retiring 4 years early). With 45 years of contributions, you can retire at 63 without any reduction.
What is betriebliche Altersvorsorge?
Betriebliche Altersvorsorge (bAV) is an employer-sponsored pension. Employees have a legal right to Entgeltumwandlung — converting part of their salary into pension contributions. Up to €302 per month is tax-free and free from social insurance. Many employers also match contributions. A €200 monthly contribution from age 30 can grow to roughly €150,000 by retirement.
How is the state pension taxed?
Since 2025, state pensions are fully taxable (previously only a percentage was taxed). The full pension amount is added to your taxable income. However, the Grundfreibetrag of €11,784 means a pension of up to €982 per month is effectively tax-free for a single retiree with no other income. Higher pensions are taxed at progressive rates.
What private pension options exist?
Main options include: Riester-Rente (state-subsidised, up to €175 annual bonus plus €300 per child), Rürup-Rente (Basisrente, tax-deductible for self-employed), private Rentenversicherung, and ETF savings plans. For self-employed people not in the state system, the Rürup-Rente allows deductions of up to €27,566 per year.
Is there a pension gap and how do you calculate it?
Most Germans face a significant pension gap — the difference between their last salary and their state pension. If you earn €4,000 net per month and your pension will be €1,500, the gap is €2,500 monthly. To fill this gap privately, you would need savings of roughly €450,000 to €600,000 at retirement, assuming a 20-year payout period.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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