Pension in Germany for older people – basic information

Pension System in Germany:

The pension system in Germany is primarily based on mandatory pension insurance, which applies to most employees. Contributions are deducted from wages and partially funded by the employer. A long-term contribution to the system is crucial for receiving benefits.

Minimum Insurance Period

To receive a pension in Germany, the minimum insurance period (“Wartezeit”) of 5 years must be met. This applies to both German citizens and foreign workers.

Retirement Age

As of 2023, the retirement age is 67 years. It is possible to retire earlier, but this comes with a reduction in pension benefits.

Types of Benefits

• Basic Pension (gesetzliche Rente) – based on contributions.
• Private Pension (private Altersvorsorge) – voluntary insurance.
• Occupational Pension (betriebliche Altersvorsorge) – funded by the employer.

Can Poles Receive a German Pension?

Yes, individuals who work legally in Germany and pay contributions are entitled to benefits. Years of work in Poland are also taken into account under the EU principle of aggregation of insurance periods.