Whether you're planning to return to France or retire in Germany, Expat Finances helps you understand the German pension system and provides expert guidance and tailored solutions.
Preparing for retirement in Germany
For whom?
Retirement benefits in Germany
Germany offers attractive savings schemes and a more favorable tax system for expats who plan ahead. Here are some key advantages compared to France:
Social contributions are often lower than in France for certain self-employed professionals.
Capital-funded pension systems with tax advantages (e.g. Rürup-Rente, Riester-Rente).
Possibility of receiving tax-free pension income, depending on your status.
Flexibility in managing financial and real estate investments for retirement.
Tax exemptions on certain investments.
Preparing for retirement in Germany:
| Type of pension | Advantages | Disadvantages |
|---|---|---|
| Public insurance (Gesetzliche Rentenversicherung - GRV) Mandatory for employees | - State-guaranteed safety | - Highly dependent on demographics - High contributions for a relatively low pension |
| Company pension scheme (Betriebliche Altersvorsorge - bAV) | - Tax and social security benefits on contributions - Employer contribution, if any | - Money locked up until retirement - Company-dependent (complicated job mobility) |
| Subsidized private retirement (Riester, Rürup) | - Major subsidies and tax breaks - Choice of investment vehicles | - Money locked up until retirement |
| Other means (free savings, real estate, equities, ETFs, private life insurance) | Unlimited" choice" - Flexible (capital is not locked in) | - No subsidies or tax deductions |
What we offer :
Retirement benefits estimate :
We analyze your personal and professional situation to estimate your pension rights in both Germany and France. We take into account your contribution years, income, any potential buybacks of missing quarters, and bilateral agreements between the two countries. Our goal is to provide you with a clear and accurate view of your future retirement income — along with actionable steps you can take today to optimize it.
Public pension advice and optimization :
Germany’s pension system operates on a pay-as-you-go basis, but it also offers opportunities for optimization. We help you understand your entitlements, verify the accuracy of your contributions with the Deutsche Rentenversicherung, and explore the best strategies to increase your future pension. We also assess whether staying in the German system or switching back to the French scheme would be more beneficial for your situation.
Defining a financial strategy :
Preparing for retirement goes beyond simply contributing to a public pension scheme. We help you set up a customized retirement savings plan, taking into account :
– Your goals for supplementary retirement income.
– Your current and future tax situation.
– The best financial and real estate investments tailored to expatriates in Germany.
– Your goals for supplementary retirement income.
– Your current and future tax situation.
– The best financial and real estate investments tailored to expatriates in Germany.
Tax and financial planning for retirement :
One of the key advantages of Germany is the ability to optimize your investments through tax-efficient solutions. We help you structure your savings to reduce your tax burden using products such as :
– The Rürup-Rente, an ideal solution for self-employed professionals and freelancers.
– The Riester-Rente, which offers access to government subsidies from the German state.
– German life insurance policies, often more flexible than their French counterparts.
– Financial and real estate investments that offer tax advantages.
Retirement savings plan recommendations :
Whether you are an employee, self-employed, or a cross-border worker, we advise you on the best retirement investment solutions in Germany. We compare various options to help you choose a savings product that fits your profile and investment horizon.
Subscription to a complementary pension plan :
The public pension system is often not enough to ensure a comfortable standard of living in retirement. We support you in enrolling in complementary retirement solutions such as private pension funds, lifetime annuity insurance, or dedicated retirement investment accounts.
Signing up for retirement insurance :
We guide you in choosing the insurance plans best suited to your profile. These solutions provide a guaranteed income during retirement while offering opportunities for tax optimization. We assist you in selecting a private retirement insurance policy or annuity contract, based on your personal situation and future plans.