Many retirees are toying with the idea of retiring abroad.
In certain cases, however, this can lead to pension reductions.
Whether it's the Mediterranean climate or affordable living costs: more and more German pensioners want to spend their retirement abroad.
This is shown by statistics from the Deutsche Rentenversicherung, according to which around 248,000 pensions were paid to Germans abroad in 2020.
In 2015 it was still around 229,000 and in 2000 it was “only” 152,000.
However, before you move, you should find out what effects a change of residence will have on your pension payments.
Receiving a pension abroad: no reductions for temporary stays
German pensioners who are only temporarily abroad need not worry about their income.
The pension will continue to be paid out in full from all contributory and non-contributory periods.
It makes no difference whether you are within the European Union or in another EU country.
The following applies to pension insurance: If you are abroad for less than six months a year, this is considered a temporary stay.
You will continue to receive the pension into an account of your choice.
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Unwind by the sea - that's how many people imagine their retirement.
© Rolf Poss/Imago
How does moving abroad affect my pension?
The situation is somewhat different if you spend more than six months abroad.
From the point of view of the pension insurance, this is then considered a permanent (“habitual”) residence.
The difference is the new place of residence: Anyone who emigrates to a member state of the EU or to a country of the European Free Trade Association EFTA (Iceland, Liechtenstein, Norway, Switzerland) usually receives their full pension.
According to a ruling by the European Court of Justice in 2009, the Riester pension may not be reduced if the person concerned spends their retirement in the EU.
In addition, Germany has concluded a separate social security agreement with other countries, which provides that German pensioners are not disadvantaged.
This includes:
Albania
Australia
Bosnia Herzegovina
Brazil
Chile
India
Israel
Japan
Canada and Quebec
Kosovo
Morocco
Moldova
Montenegro
North Macedonia
Philippines
Serbia
South Korea
Tunisia
Turkey
Uruguay
United States
These seven tips will save you a lot of money in everyday life
These seven tips will save you a lot of money in everyday life
Permanent stay abroad: Pension cuts are threatened here
In all countries that do not belong to the EU or EFTA and with which no social security agreement has been concluded, pensioners must expect deductions for permanent residence.
Then the pension insurance only pays out the pension entitlements from the contribution periods that you spent in Germany.
The same applies to pension shares under the Foreign Pensions Act.
There may also be reductions in the full disability pension if this was not only granted for medical reasons.
Exceptions exist for countries such as Serbia, Montenegro, Israel, Morocco and Tunisia, with which agreements have been concluded.
List of rubrics: © Rolf Poss/Imago