Pension in Germany for Foreigners
If you work in Germany, you are automatically enrolled in the public pension system — regardless of your nationality. Your contributions are not lost when you leave. Here is exactly how it works.
How the Contributions Work
Every employed worker in Germany pays into the Gesetzliche Rentenversicherung (statutory pension insurance). The total contribution rate is 18.6% of your gross salary, split evenly between you and your employer.
(deducted from paycheck)
(paid on top of salary)
of gross salary
The 5-Year Rule — The Most Important Threshold
Whether you receive a pension or a refund hinges on one number: 60 months (5 years) of contributions.
| Your Situation | What Happens | Action |
|---|---|---|
| 5+ years contributed | You qualify for a monthly pension at retirement age (65–67), payable anywhere in the world. | Pension |
| Less than 5 years | No monthly pension. You may apply for a contribution refund, or combine with time worked in other countries. | Refund possible |
Working in multiple EU countries? Years worked in any EU/EEA country, Switzerland, Norway, Iceland, or Liechtenstein are combined with your German years. For example, 3 years in Germany + 3 years in Spain = you qualify for a small German pension, paid separately.
Key Numbers at a Glance
Who Can Get a Refund?
If you leave Germany before the 5-year mark, you may reclaim your contributions. Eligibility depends heavily on your nationality and where you move to.
| Citizen of | Refund Possible? | Why |
|---|---|---|
| Non-EU / Non-contracting states (e.g. Bangladesh, most of Asia/Africa) |
Yes | Cannot make voluntary contributions abroad → full refund of your share after 24 months outside Germany. |
| Contracting states (e.g. USA, Canada, Australia, India, UK, Turkey) |
Partial | Refund possible only if you contributed less than 5 years and now live outside the EU/EEA. |
| EU / EEA / Switzerland | No | You retain the right to make voluntary contributions, so no refund is issued. Pension is paid at retirement. |
You must also meet all three of these conditions to claim a refund:
- You have officially deregistered (Abmeldung) from Germany
- At least 24 months have passed since your last contribution
- You are not allowed to make voluntary contributions from your new country
The 4-Step Refund Process
Beyond the State Pension — Private Options
The public pension is designed as a base income, not a full retirement plan. Most financial advisors recommend supplementing it:
| Option | Best For | Key Benefit |
|---|---|---|
| Betriebliche Altersvorsorge Company Pension |
Employees with generous employers | Employer must contribute at least 15%. Tax-efficient while employed in Germany. |
| Rürup Pension (BasisRente) |
Self-employed foreigners | Up to €26,528/year in tax deductions. Cannot be cashed out early. |
| Riester Pension | Low earners, families with children | State subsidies. Less relevant if you plan to leave Germany. |
| ETF Savings Plan | Flexible expats, US citizens excepted | High liquidity, strong long-term returns, no lock-in. Widely recommended on expat forums. |