Pension System in Germany | Public Pension, Rürup, Riester, Company Pension, Private Pension, etc

Рет қаралды 15,844

Күн бұрын

Germany's pension system explained for expats. Employees pay in 18,6% of their gross salary into public pension (Deutsche Rentenversicherung) split with their employer. That is more than 900€ per month in our example payslip. 😱
How much are YOU paying into public pension? 🤔
What will be your pension from social security? 🤔
Are other pensions available in Germany? 🤔
Is it worth it to get (one of) them? 🤔
How are pensions in Germany taxed? 🤔
Find out everything you always wanted to know about:
✅ Public Pension (Deutsche Rentenversicherung)
✅ Base Pension (Basisrente or Rürup)
✅ Riester Pension
✅ Company Pension
✅ Private Pensions
Read the article here: perfinex.de/pension-system-in...
Videos Axel mentioned:
German Payslip Explained | Gross Salary & Net Salary, Income Taxes, Social Security, Pension
• German Payslip Explain...
Taxes in Germany Explained | Income Tax, Tax Classes, Church Tax, Solidarity Tax
• Taxes in Germany Expla...
German Social Security System Explained | Health Insurance, Public Pension, Accident Insurance, etc
• German Social Security...
Health Insurance in Germany: Public Health vs Private Health | What's Better For You?
• Health Insurance in Ge...
More videos on Pensions in Germany:
Which German Pension Is Best for You? | German Pensions with Scenarios for Expats Living in Germany
• Which German Pension I...
German Pensions Level 1: Public Pension & Rürup | High Tax Benefits for Your ETFs in Rürup Pension
• German Pensions Level ...
German Pensions Level 2: Company Pension & Riester | Tax Benefits & Government Bonuses with Riester
• German Pensions Level ...
German Private Pensions Level 3 | The Right Pension for Expats with Tax-Free Growth of Your ETFs?
• German Private Pension...
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00:00 Intro
02:41 Public Pension Explained
06:43 Level 1: Public Pension & Base Pension
07:51 Level 2: Riester & Company Pension
09:21 Level 3: Private Pensions
11:17 Which Level is Right for You?
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Пікірлер: 88

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@justice7497 2 жыл бұрын

Ihr guter Ruf spricht bereits für sie. Letzten Monat habe ich über 100.000 $ bei ihr investiert und bereits über 50.000 $ Gewinn gemacht.

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@georgerobinson2021 Жыл бұрын

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@user-cj5up6dw6x 5 ай бұрын

Thanks for providing useful information. Have you done any video comparing pension systems in Germany vs Portugal?

@liller2914 3 жыл бұрын

I’m happy to have found your channel! Great video and information. If I am already contributing to DC and BAV at work, does it still make sense to open a Riester? Are there overall limits to pretax contributions for all options in Level 2?

@PerFinEx 3 жыл бұрын

Thank you for the nice words. 🙂 Pensions level 2 have individual maximum contributions (2021 numbers): - bAV (company pension) offers 6.816€ tax-free & 3.408€ free of social security - Riester offers 2.100€ tax-free & government bonuses (175€ for adults & 300€ for kids) So yes, it can make sense to still secure government bonuses with a Riester despite having a bAV.

@kiarina1404 5 ай бұрын

Thank you Axel for this and all the other enlightening videos on the German pension system. Is it possible (and does it make sense) to start contributing to one of those additional pensions when one has not yet reached the minimum of 5 years of work in Germany for getting the public German pension (but one plans to stay to reach that - and even longer) ? A big thank you in advance!

@Tweeteketje 3 жыл бұрын

Very clear video! I'm a tax lover though, since taxes make a country generally better, see Netherlands and the Scandinavian countries where taxes are quite high ^^

@farahhasan5481 3 жыл бұрын

Would love to see a separate private pension video.

@PerFinEx 3 жыл бұрын

Separate pension videos with scenarios (e.g. which pension is best for whom) will come in January.

@exoanita 3 жыл бұрын

Thanks for the video. It makes the pension system much easier to understand. As you mentioned for expats who don't know whether they will but a house in Germany or whether they will retire in Germany, private pension is the option to go. Do you have a few recommendations on private pension to consider? Also, if I decide to pay into Riester as an expat, can I also only start getting this money at my retirement age? ( Like the public pension?)

@PerFinEx 3 жыл бұрын

I'm happy the video was helpful to you. 😊 To "private pension is the option to go": - It depends whether this expat wants to buy a home for self-use or a real estate investment. - Getting a monthly pension from Germany is not that bad even if you decide not to retire in Germany, right? At least you enjoyed the tax benefits of level 1 + level 2 your entire working life. To "recommendations": - Depends on many different factors: what are you getting this pension for? For how long? Do you eventually wanna use it to invest in real estate? If so, self-use or rent it out? What kind of ETFs/Mutual Funds do you want? Do you want a guaranteed payout? If so, how much? - We can talk about your wishes for a private pension and help you find the best one for you: perfinex.de/meeting To "Riester" - You can cancel a Riester anytime and get your contributions (-tax savings & -state bonuses) - If you wait until retirement age, you can get up to 30% payed out once and the rest will be a monthly pension - Axel

@hazembensassi727 3 жыл бұрын

First of all, many thanks for your content, it's really helpful! As an expat in Germany, I was about to opt for my company pension plan, but these clarifications made me confused on what's really optimal for me. What if I want to go back earlier to my home country or anywhere else? What if I needed my capital as a 1-time payout? would make me lose the benefits I cumulated?

@PerFinEx 3 жыл бұрын

Great questions you are asking yourself, because pension planning means long-term planning! This video might help you kzfaq.info/get/bejne/l5qaoc6KrtimhWQ.html or you can secure a free meeting with this link perfinex.de/meeting & Axel will help you find the pension (level) that's right for you.

@hazembensassi727 3 жыл бұрын

Thanks for your reply! I posted the comment before watching the rest of the videos and now I have a better overview. Again, thanks a lot 👏🏼

@arunsak86 2 жыл бұрын

Thanks for the useful information. Shall I able to find my current pension points anywhere?

@PerFinEx 2 жыл бұрын

You can find your public pension points in the letter the Deutsche Rentenversicherung is sending you every year. The public pension letter is explained here: kzfaq.info/get/bejne/ep2om8yYls6Vd3k.html

@basildias790 3 жыл бұрын

Thanks for the Video, what are the options for expat who only plans to live in Germany for couple of years ? Instead of opting in for Level 1 pension scheme where what my employer pays i cant withdraw when i leave the country are there options where i can (+ my employer) can pay into a pension fund where all funds are accessible to be withdrawn ? are these laws the same for an free lancer ?

@PerFinEx 3 жыл бұрын

Great questions. 1. All employees have to opt-in to public pension level 1. If you want to withdraw your savings, you have to go for pensions level 2 or level 3. 2. Freelancers have much more freedom, because they can opt-out of public pension under certain circumstances.

@ramblingmillennial1560 Жыл бұрын

This system is similar to the US system. Great explanation.

@peterdurnien9084 2 жыл бұрын

Yep, its the same here in the UK start young.

@ThisGuyLoots Жыл бұрын

if i come from another country, and i already have a pension account in said country, can i transfer the money into one of the level 1/2 pensions without paying taxes? does it depends on the laws of the origin country? if so what countries have a tax agreement with Germany?

@PerFinEx Жыл бұрын

You are right. It depends on the rules of the pension in your country of origin.

@NonSequitur404 3 жыл бұрын

Thanks for this video. Can you please clarify if an employed person can opt out of public pension payment altogether and pay it towards one of the above mentioned private pensions? If that's not possible as an employee is this possible as a self employed person? Basically I want to know if it's at all possible to quit public pension and go fully private and maybe pay less and be assured more of my saved money will go to my future. Really find your content helpful, thanks mate.

@PerFinEx 3 жыл бұрын

Great question. Employees have to pay into public pension, only self-employed have the freedom to opt out.

@NonSequitur404 3 жыл бұрын

PerFinEx - Personal Finance for Expats in Germany Thanks so much for your response

@karanchopras 3 жыл бұрын

I am bit confused about deferred compensation , where does it fall in these scheme? My employer is asking if I want to opt for it through R + V versicherung

@PerFinEx 3 жыл бұрын

Deferred Compensation = Company Pension Level 2

@karanchopras 3 жыл бұрын

@@PerFinEx Thanks you made things very clear. Would love to see your other videos

@ricdotdev 3 жыл бұрын

Does having the level numbers mean that I need to have the previous level first before going on the next level? In other words, should I have Level 2 pension first before having a Level 3 pension?

@PerFinEx 3 жыл бұрын

Excellent question. You can get any level you want and combine independent of each other.

@ricdotdev 3 жыл бұрын

@@PerFinEx Thank you!

@gautamkishoreshahi1268 2 жыл бұрын

what is the difference between public and base pension? I am in a public VBL pension scheme, what is it?

@PerFinEx 2 жыл бұрын

Public pension is the pension from the government (Deutsche Rentenversicherung). Base pension is the private version of the public pension from private insurance companies (kzfaq.info/get/bejne/Z9mpq8xhprqsfn0.html). VBL is the company pension of public service employees (kzfaq.info/get/bejne/g8iBlsabtMvFe6c.html).

@arifulhaquebhuiyan 3 жыл бұрын

Hi Axel, your videos really help to understand many concepts. I have just two more question. Q1. For level 1 pensions, Can I choose between Public pension and Base pension or I must pay public pension and base pension is optional add-on? Q2. After paying Level 1 pension, can someone also choose Є150/month for Level 2 Reister and Є100/month for Level 3 private pension?

@PerFinEx 3 жыл бұрын

Hi Ariful, good to hear that our videos are helpful to you. Makes me very happy. Q1: As an employee you are forced to pay public pension and all other social security, so base pension would be on top. As self-employed or business owner you can exit public pension and just pay base pension. Q2: You can choose and combine any pension level you want and whichever pension makes the most sense for your personal situation. That's the beauty about the German pension system. - Axel

@arifulhaquebhuiyan 3 жыл бұрын

@@PerFinEx Thanks for the details answer Axel. Appreciate it.

@elianefernandes4733 2 жыл бұрын

@@PerFinEx humm..so one MUST be public insured and then combine the other 2? That can be my way to go as an Expat who already pays for a House in my home country, knowing that I will be in Germany for at least 5 years, and then who knows. But if I combine 2 and 3, the benefits of one and another will be separated, right? Like they don't even care if I'm "cheating" with the other one, oder? :)

@PerFinEx 2 жыл бұрын

You are right, public pension (actually all of social security) is always mandatory for employees in Germany. You can only exit as self-employed or business owner. If you would like to get other pensions on top of the mandatory public pension, you will get additional benefits like government bonuses or tax benefits.

@elianefernandes4733 2 жыл бұрын

@@PerFinEx thank you!

@syedibrahimabbas2559 3 жыл бұрын

I am interested in the private pension , some numbers and the risk benefits details will be helpful . Thanks

@PerFinEx 3 жыл бұрын

Great, that you want to improve your financil future! You can book a free meeting right here and we will make sure you'll get all the answers you are looking for: perfinex.de/meeting

@oyinboohiorenuandirisu8258 2 жыл бұрын

Please I work in germany for 4years and letf germany, can I get anything as pension or how can I benefit from this work I did when living in germany?

@bbb1018 6 ай бұрын

Any suggestions for Americans? So many options are limited. I cannot buy ETF'S in Germany...😢

@PerFinEx 6 ай бұрын

Us citizens can buy ETFs in Germany, just not in standard brokerage accounts. With the right type of pension scheme even US citizens can invest in ETFs. We can help you select a pension scheme in a free meeting: perfinex.de/meeting

@cast7077 3 жыл бұрын

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@arunsak86 2 жыл бұрын

Hello, I have a question regarding Riester pension. Let us consider I pay for Riester Pension for 10 years. Then I leave Germany and move to other country. I won't cancel my Riester pension contract but I wont contribute anymore.. In that case, whether I will get my pension after my retirement?

@PerFinEx 2 жыл бұрын

If you move to another country within the EU: Yes. If you move outside the EU you (officially) have to cancel your Riester pension and will get your money back.

@arunsak86 2 жыл бұрын

@@PerFinEx Thanks for your reply. its clear now. If I cancel the pension plan, I will get only my contribution back and not the goverment subsidy. Am I correct?

@ArianeMorassiSasso 2 жыл бұрын

What happens to Riester when I change jobs?

@PerFinEx 2 жыл бұрын

As long as you are an employee nothing will happen to your Riester pension.

@jenelyngodinez1795 3 жыл бұрын

What is meaning pension insurance?

@PerFinEx 3 жыл бұрын

Maybe you mean public pension (the German government pension system)?

@balajiselvam 2 жыл бұрын

Can we have only private pension?

@PerFinEx 2 жыл бұрын

As long as you are an employee the government is forcing you to pay into public pension (Deutsche Rentenversicherung).

@NG-lm8kw 3 жыл бұрын

Not bad I am getting 500 € / month salary after 15 years of service in India and for past 6 years I am at managerial post!

@PerFinEx 3 жыл бұрын

Good for you!

@ismailshahismail8239 3 жыл бұрын

Good

@Shubh22 3 жыл бұрын

You need to learn the differences in living costs in India and Germany. In 500 euro, you can't even rent a reasonable 2 room house in Germany and the idea of a getting a 'maid' doesn't exist here.

@NG-lm8kw 3 жыл бұрын

@@Shubh22 I was in UK for months so I know the cost of living and expenses there are high, what I ment was after 15 years of service what I am getting here is less 500 € is now nothing in Indian cities a flat costs 100k plus !