Benefits
Why it matters: financial security for your future
The statutory pension insurance (GRV) helps you build retirement savings through monthly contributions during your working life. For expats living and working in Germany, it provides a reliable foundation for income in old age or in case of disability.
We will answer your most urgent questions about the GRV
Who contributes to GRV?
Who is required to pay into the statutory pension system in Germany?
How much do I pay?
What percentage of my income goes into the pension insurance?
What benefits are included?
Is GRV only for retirement, or are there other benefits?
Can I transfer my pension rights?
What happens to my contributions if I leave Germany?
Statutory pension insurance (GRV)
The German GRV paved the way for many state pension systems around the world and has been in existence since 1889. The basic idea there was the ‘intergenerational contract’, which meant that the working population paid the contributions from which the pensions of those who had already retired were financed. This worked well as long as the ratio of (relatively) few pensioners to (relatively) many contributors was right. However, this has changed dramatically in Germany in recent decades. As a result, the current contribution rate of the statutory pension scheme is 18.6% of gross income up to the contribution assessment ceiling of €8,050 (as at 1 January 2025). However, the standard pension after 45 years of contributions with average gross earnings of around €4,200 is only around €1,500 net.
Due to this low total pension provision, it is now common for German employees to make further provision in addition to the SPS:
1) Company pension schemes with state-guaranteed benefits, such as tax savings and a reduction in social security contributions, as well as employer allowances
2) Private pension provision through various pension insurance policies (e.g. unit-linked insurance savings plans with tax advantages).
01
Book an appointment
Choose a convenient time in our calendar to speak with a team member.
02
Get free guidance
Tell us about your current situation, and we’ll offer tailored advice at no cost to you.
03
Find clear solutions
Receive helpful options, step-by-step recommendations, and access to useful services that match your needs.
Get in touch with us
