Brian Cahill
Brian Cahill
Arturo Castro Nava
Arturo Castro Nava
MCAA Management
German pension
Dear all,
I have got recognised further study times in Germany and I can pay retroactively for 7 years and 4 months, which is more than 5 years, which means that I can receive a German pension. Now people told me that in order to receive a German pension you have to stay in Germany. Do you know more about this?
thank you and kind regards
Maria
2 Comments
Hi Brian,
thank you so much. The relevant text is "We have to hope that the law changes for the better by the time we reach pension age. " Still I hope, by seeing the Romanian youth, that a pension from Germany is safer than in Romania. And if I compare what I am entitled to receive compared if my pension contribution would be in a bank account, then if I get pension longer than 4 years I am in a win situation. Of course, I cannot be sure that I live that long, but since I have no children it is not my problem that others inherit less that pension contribution.
I also think that having the pension taxed is better than having to reside in Germany, even if my dream is to reside somewhen in Germany, so maybe I will move there in pension, who knows. But people keep telling me that I have 1 grave in a cemetery in Hungary and 2 in Romania so how will I be burried in Germany if I move there.
I also saw banks offering private pensions, but after my experience with the life insurance, I don't think this is a good investment of money.
kind regards
Maria
Hi Maria,
I posted a short article about this 3 years ago: Pension Issues for Mobile Researchers in Germany
You can live outside Germany and receive a pension. There are some disadvantages in comparison to German residents. The 93-year-old mother of one of my colleagues receives a German pension and she has to prove that she is still alive once a year.
The relevant text is:
Taxation and Administration of Pensions during Retirement: Before 2005 German pensions were taxed in the country of residence of the pensioner. The German pensions of pensioners who are resident outside of Germany are taxed in Germany since 2005. Those who receive less than 90% of their income from Germany are not considered tax resident in Germany and are taxed without benefit of tax-free allowances. As the pensions are taxed without any tax-free allowance, German pensions are less attractive for those who will live outside of Germany during retirement than for normal Germans. I guess the taxation of pension during retirement in Germany rather than the country of residence is one reason why German law is incompatible with RESAVER. The administration of small pensions to foreigners in this way must be very bureaucratic and expensive for the concerned German tax offices. Most of all this issue is expensive and bureaucratic for the pensioners themselves. Pensioners have to make a tax declaration in a foreign language at a time when they may be senile. We have to hope that the law changes for the better by the time we reach pension age. The demographic problems and pension cliff in Germany are well known and may also lead to lower payment levels from German 1st pillar pensions in relative terms.
Warm regards,
Brian