Retirement
You're paying into a pension. What does that actually get you?
The state pension, workplace pensions, Rürup and the new Altersvorsorgedepot, and how they fit together.
Not sure where to begin?Where does my German pension money go?Start with the state pension. It's the one you're already paying into with every payslip.
Other questions in Retirement
- Is a Rürup pension worth the tax break?A deduction now, a locked-in lifetime pension later.9 min read
- Should I say yes to my employer's pension offer?The bAV, the 15% subsidy and the 2026 limits.8 min read
- What's the new Altersvorsorgedepot?Germany's subsidised retirement account from 2027, if you're eligible.8 min read
Retirement in Germany, in one paragraph
Retirement income in Germany usually rests on three layers: the state pension (gesetzliche Rente), workplace and subsidised pensions, and your own savings. From 2027, a new subsidised account joins them.
Layer 1
Basic provision
Statutory pension (gesetzliche Rente) and the Rürup pension (Basisrente).
Layer 2
Supplementary provision
Workplace pensions (bAV), Riester and, from 2027, the Altersvorsorgedepot.
Layer 3
Private savings
Your own investments, for example an ordinary ETF depot. No special tax treatment, full access.
Pension words you'll hear
- Gesetzliche Rente
- The state pension, paid for by contributions from your salary.
- Entgeltpunkte
- Pension points: one point for a year at the average salary.
- bAV
- Betriebliche Altersversorgung: a pension arranged through your employer.
- Rürup
- A private pension with tax advantages and strict payout rules.
- Altersvorsorgedepot
- The new subsidised retirement investment account from 2027.
Try it with your own numbers
AV-Depot Subsidy CalculatorHow much could the state add to your retirement savings? (Rules 2027, checked)Live