How much money will you really need in retirement? Our simple tool helps you calculate your monthly gap. It considers inflation, taxes, and your foreign pension benefits.
From your 'Renteninformation' (projected value at 67).
Money you expect from other countries.
*Accounts for loss of purchasing power due to inflation for the same standard of living.
**Statutory reduction (0.3%/month) compared to your individual standard retirement age (max. 14.4%).
How the calculation works:
1. Money loses value (Inflation): Things will cost more in the future. The 'Needed in Retirement' value shows how much money you'll need then to afford the same lifestyle as today.
2. Net is what counts: About 11% is deducted from your pension for health and long-term care insurance. The calculator does this automatically so you see what actually hits your bank account.
3. Pensions grow too: The calculator assumes pensions increase annually at about the same rate as prices. This keeps the comparison between future income and costs realistic.
4. Retiring early costs money: If you retire before 67, you face lifelong deductions (0.3% per month). Plus, you've paid in for fewer years. The calculator handles this for you.
How to close the gap for Expats in Germany
The pension gap is the difference between your current income and what you will get from the state. Many people are surprised by how large this gap is. Inflation makes your money worth less every year. Also, you must pay taxes and health insurance on your pension.
To have a good life in retirement, you need private savings. Here is what helps:
- Start Early: Even small amounts grow large over 20 or 30 years.
- Invest in ETFs: High-yield investments are better than simple bank accounts.
- Tax Benefits: Use special plans like Net Policies to save taxes while you save money.
Frequently Asked Questions
How accurate is the gross-to-net estimation?
Why do deductions decrease percentage-wise for very high salaries?
What inflation rate should I assume?
How much net remains from my pension?
What can I do if the gap is too large?
Does this calculator replace a consultation?
Related Topics:
Requirements for Expats
- Valid German Address (Anmeldung)
- German Bank Account (IBAN)
- German Tax ID