Retirement Planning Abroad: What Emigrants Should Sort Out Now
Retirement planning is the item most often left behind when emigrating – and the one that becomes most expensive if you leave it. Unlike health insurance, you do not notice immediately that something is missing. You notice thirty years later.
Three questions define your situation: what happens to your statutory pension? Which existing contracts can you continue from abroad? And how do you build new provision when you are no longer firmly anchored in any one system?
1. What happens to your German pension
Accrued entitlements remain
Contributions you have paid in Germany are not lost. Your entitlements remain and are paid out later – in principle also if you live abroad. Note the specific payment rules for residence outside the EU.
New entitlements do not accrue automatically
During your stay abroad you generally do not pay into the German pension system, so your entitlement stops growing. That is exactly where the gap appears. Whether voluntary continued insurance is possible and worthwhile depends on your destination country and employment situation.
Aggregation of insurance periods
Within the EU and in countries with social security agreements, insurance periods are aggregated to meet the qualifying period for a pension entitlement. Each country, however, pays only the part accrued with it. Anyone who has worked in four countries later receives four partial pensions – not one combined pension.
2. Review existing contracts before you leave
Many German provision contracts are not designed for emigrants. Clarify before departure:
- Riester: the state subsidy is tied to unlimited tax liability in Germany. If you move outside the EU/EEA, a repayment obligation for allowances received can arise.
- Occupational pension schemes: what happens to the accrued capital? Can it be made paid-up, transferred or continued?
- Occupational disability insurance: does the contract contain clauses on stays abroad? Taking out new cover from abroad is usually much harder.
- Life and pension policies: can contributions still be paid, and how will the later payout be taxed in your new country of residence?
3. Building new provision abroad
International lives require flexible strategies. Three characteristics matter most: the contract should survive a change of residence, be held in a stable currency, and not be tied to a single national subsidy system that you lose at the next move.
Wealth building
We support you in building and protecting your assets – with solutions that fit your goals and take account of the tax specifics of your country of residence.
Income protection
Your income is the basis for everything. We make sure you stay protected in case of illness or occupational disability – particularly as a freelancer without a social safety net in your destination country.
Investments
Conservative, growth-oriented or mixed: we align your investments internationally and pay attention to currency risks and tax effects.
4. Reserves: the short-term side of provision
Alongside long-term retirement provision you need reserves available at short notice. Abroad, more than in Germany: an emergency flight home, a deposit for a new flat, bridging a gap in assignments, or a medical deductible payable immediately.
As a rule of thumb, three to six months of expenses – for self-employed people and digital nomads rather six to twelve. A simple framework is the 50-30-20 rule. With the right reserve strategy you can move through life abroad independently and calmly.
Want to know how large your pension gap really is? Use the net pension calculation or write to us on WhatsApp (+49 151 28937141). All the other points before departure are in the emigration checklist.
Frequently asked questions about retirement planning abroad
Does my German pension lapse if I emigrate?
No. Entitlements already accrued remain and are paid out later, in principle also with a residence abroad. New entitlements generally do not accrue during your stay abroad, however, because you are not paying in.
Can I voluntarily continue paying into the German pension system?
Voluntary continued insurance is possible under certain conditions. Whether it is worthwhile depends on your age, the entitlements you have already accrued, your destination country and whether you are paying into a system there. We work that through with your figures.
What happens to my Riester contract?
Riester subsidies are tied to unlimited tax liability in Germany. If you move within the EU or EEA, the subsidy is in principle retained. If you move to a third country, a repayment obligation for allowances and tax advantages received can arise. Check this before departure.
Are my years abroad credited to my German pension?
Within the EU and in countries with social security agreements, insurance periods are aggregated to meet the qualifying period for a pension entitlement. Each country pays only the share accrued with it, so several partial pensions result.
Which provision products work abroad?
The most robust solutions are those that survive a change of residence, are held in a stable currency and are not tied to a national subsidy system. Products tied to subsidies often lose their advantage when you move.
How much reserve do I need abroad?
More than in Germany. As a rule of thumb three to six months of expenses, and for self-employed people and digital nomads rather six to twelve. Reasons include a possible flight home, deposits, gaps between assignments and medical deductibles payable immediately.
Want to make your provision work abroad? Book a free initial consultation or start the insurance check.
Why SpreeFinanz?
We advise emigrants on retirement planning abroad – looking at both sides: what is left behind in Germany and what has to be built in the new country.
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We are quickly
reachableVia WhatsApp, video call or phone – across time zones, even once you have already left.
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We work
transparentlyYou see which contract continues, which loses its subsidy and where a repayment obligation may arise.
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We think
situation-basedA move within the EU, to a third country or a nomadic life lead to entirely different answers – including on tax.
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We stay with you
after signingOn a change of country or a return to Germany we check what needs to be adjusted.
