German Pension Calculator

Your pension is calculated from Entgeltpunkte (earnings points) accumulated throughout your working life. Earning the German average salary (approximately €45,358 in 2024) for one year gives you 1.0 Entgeltpunkt, worth approximately €39.32/month in the West as of mid-2024. After 35 years at average earnings, you would receive roughly €1,376/month — before income tax, which increasingly applies to pension income as Germany phases in full taxation by 2040.

The pension gap is the difference between your expected state pension and the monthly income you need in retirement. A commonly used estimate is 70–80% of your pre-retirement net income. With average German state pensions around €1,400–1,500/month and many urban professionals needing €2,500–3,500/month, the gap is often substantial — and particularly significant for expats who have spent only part of their career contributing to the German system.

Yes — you can make voluntary additional contributions (freiwillige Beiträge) to fill gaps from years you studied abroad, were self-employed, or lived in another country. You can also buy back periods of child-raising or caregiving. Whether this produces a better return than alternative investments depends on your personal circumstances, contribution amount, and how long you expect to draw the pension.

Germany is phasing in full taxation of state pension income by 2040. The taxable share depends on your retirement year: those who retired in 2024 have 84% of their pension taxed; those retiring in 2040 or later will have 100% taxed. Private pensions (Riester, Rürup) have different and often more favourable tax treatment at payout, with contributions deductible during the accumulation phase.

Rental income and ETF portfolios are among the most common approaches expats in Germany explore to supplement the state pension. One rental property generating €800–1,200/month net can significantly close a typical gap. During the investment phase, property depreciation (AfA) also reduces income tax on salary, providing a double benefit while the mortgage is active.