Germany Pension Calculator — Statutory Rente Riester and Rürup
Calculate your German pension from statutory Gesetzliche Rentenversicherung plus Riester and Rürup private pillars. Project monthly retirement income.
The German pension system has three pillars: statutory pension (Gesetzliche Rentenversicherung or GRV) occupational pensions (Betriebsrente) and private pensions (Riester and Rürup). The statutory pension is funded by an 18.6% contribution split equally between employee (9.3%) and employer (9.3%) on gross salary up to the contribution ceiling (Beitragsbemessungsgrenze) of €90600 per year in 2026. Your pension amount is calculated using earnings points (Entgeltpunkte) — each year your pension points equal your salary divided by the average German salary that year. At retirement total points × current point value (around €39 in 2026) × pension type factor gives your monthly pension. Riester pensions receive state subsidies and tax deductions; Rürup (Basisrente) suits self-employed earners with 100% deductibility up to the ceiling.
How much German state pension will I receive?
Your monthly statutory pension equals earnings points × point value (€39.32) × pension type factor (1.0 for standard retirement). Earnings points: each year your salary ÷ average German salary (~€45000 in 2026) = that year points. Example: 40 years at exactly the average salary = 40 points × €39.32 = €1573 per month gross. High earners above the ceiling max out at about €3100 per month. Early retirement reduces pension by 0.3% per month early (3.6% per year). Working past 67 increases it by 0.5% per month (6% per year). Women claiming for child-rearing years get additional points (Kindererziehungszeiten).
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Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| Contribution Rate | 18.6% (split 50/50) |
| Current Pension Point Value | €39.32 per month (2026) |
| Contribution Ceiling | €90600/year (2026 West) |
| Standard Retirement Age | 67 years |
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Use Calculator NowFrequently Asked Questions
How much German state pension will I receive?
Your monthly statutory pension equals earnings points × point value (€39.32) × pension type factor (1.0 for standard retirement). Earnings points: each year your salary ÷ average German salary (~€45000 in 2026) = that year points. Example: 40 years at exactly the average salary = 40 points × €39.32 = €1573 per month gross. High earners above the ceiling max out at about €3100 per month. Early retirement reduces pension by 0.3% per month early (3.6% per year). Working past 67 increases it by 0.5% per month (6% per year). Women claiming for child-rearing years get additional points (Kindererziehungszeiten).
Is Riester pension worth it in Germany?
Riester pensions suit employees with children because the state subsidy is substantial: €175 basic subsidy per adult plus €300 per child born after 2008 (€185 for earlier children). To get the full subsidy you must contribute 4% of your previous year gross income (minimum €60 maximum €2100) including the subsidy. Contributions are also tax-deductible up to €2100. At retirement Riester payments are taxable but typically at a lower rate. Riester is less attractive for single high earners without children where fees can erode returns — compare to Rürup or ETF savings.
What is Rürup pension for self-employed in Germany?
Rürup (Basisrente) is the tax-advantaged pension option for self-employed and freelancers who cannot contribute to statutory pension or Riester. Contributions are deductible as Sonderausgaben up to €27566 per year (2026) and 100% of this is deductible from taxable income. High-earning freelancers in the 42% tax bracket save up to €11578 in taxes on a full contribution. Payments at retirement are taxable with a portion tax-free depending on your retirement year. Unlike other pensions Rürup cannot be cashed out early inherited flexibly or pledged as collateral — it is strictly a lifetime annuity.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Should I invest regularly or as a lump sum?
Regular investing (dollar-cost averaging) smooths out market volatility by buying at various price points. Lump sum investing works better if markets are undervalued. For most people, regular monthly investing is simpler and more disciplined.
How much should I invest monthly to reach my goal?
The amount depends on your target, timeline, and expected returns. Use this calculator to model different scenarios. The key factors are starting early, investing consistently, and reinvesting returns.
Are investment returns taxable?
Tax treatment varies by investment type and country. Capital gains, dividends, and interest income may be taxed differently. Consult a tax professional for advice specific to your situation and jurisdiction.
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Last updated: March 2026