Homepage of the Deutsche Rentenversicherung
Information about the German state pension scheme can be found on their homepage for foreign languages. The German site has a lot more information.
Statutory Pension / die gesetzliche Rentenversicherung (GRV)
The state scheme is financed by a payroll tax known as “social security contributions”. Premiums are deducted by the employer, who normally pays half of the contribution. Those currently paying into the system is funding the current pensioners.
Self-employed are allowed to contribute to the GRV.
If you have worked and paid contributions in Germany for more than 60 months, you will receive a German pension after reaching the official German pensionable age. In addition to the periods of contributory employment, many other periods are considered, including:
- Child-rearing (until three years of age)
- Child raising period (up until 10 years of age)
- Schooling and university after the age of 17
- Training periods
- Times of illness and unemployment
- Times caring for relatives
If you worked in Germany for less than 60 months, you are entitled to a refund of your own contributions. The company contributions are forfeited.
Early retirement is possible if you are willing to forgo a percentage of your GRV.
How to apply for a Social Security number?
Talk to your medical aid provider, they can apply for your number.
You need to supply your employer with this number.
You can also find information here (in German)
Company pension / betriebliche Altersvorsorge
This is a voluntary pension scheme in addition to the GRV. The company you work for might have a pension scheme and if so, usually pay a part of your contributions. There are five different schemes available. These are direct grants, support funds, direct insurance, pension companies and pension funds. Contributions are tax free up to a certain amount.
Private Pension / private Altersvorsorge
These schemes are completely private and funded by the individual.
The Riester pension scheme was introduced in 2002 and can be used to top up your GRV contributions. Only those contributing to the GRV is eligible for the Riester pension scheme.
The Rürup Pension plan was was introduced in 2005 and is for those not contribution towards the GRV.
There are many private pension providers. A financial advisor can assist in choosing the best one for you.
Useful Terms
| Social security card | der sozialversicherungsausweis |
| Pension scheme | die Rentenversicherung / die Altersvorsorge |
| Statutory pension scheme | die gesetzliche Rentenversicherung |
| Private pension scheme | die private Rentenversicherung |
| Pensioner | der Rentner / die Rentnerin |
| Direct Grant | die Direktzusage |
| Support Fund | die Unterstützungskasse |
| Pension Company | die Pensionskasse |
| Direct Insurance | die Direktversicherung |
South Africans in Germany 