Pension Gap Calculator
Estimate your retirement income gap and how much you may need to invest to close it (planning estimate).
Your inputs
Savings & assumptions
*Planning estimate only. Public pension depends on your German insurance record (e.g., Renteninformation), future work, and legislation.
Results
Germany • Rentenlücke • Retirement planning for expats
Pension Gap Calculator Germany
Use this free pension gap calculator to estimate your Rentenlücke (retirement income gap) in Germany. Get a clear monthly gap estimate, an illustrative savings target, and two charts (including an OECD-based example). If you want a personal plan, you can book an appointment with Finanz2Go.
What is a pension gap (Rentenlücke) in Germany?
Your pension gap is the difference between (1) the income you want to have each month in retirement and (2) the income you expect to receive. In Germany, your retirement income often comes from multiple pillars: the gesetzliche Rente (statutory pension), possibly a company pension (bAV), private retirement contracts, and personal investments. The “gap” appears when those income sources do not cover your target lifestyle.
For many expats in Germany, the pension gap is harder to estimate because careers are often international: years in Germany, years abroad, different pension rules, and changing plans about where retirement will happen. That’s why this page focuses on a simple and transparent approach: define a target, estimate the main sources (especially the statutory pension), and calculate the difference.
The goal is not to predict the future perfectly. The goal is to make your planning assumptions visible—so you can improve them over time.
Germany pension gap calculator
If you have your Renteninformation, enter the monthly pension estimate (ideally net; if you only have gross, use it consistently and treat results as approximate). If you don’t have it, you can still run scenarios and refine later. Deutsche Rentenversicherung also provides guidance on what the Renteninformation is and what it contains. Official DRV page.
Pension Gap Calculator
Estimate your monthly pension gap in Germany and see live charts.
Your inputs
Income at retirement
Assumptions for closing the gap
Your results
Live chart: target vs expected vs gap
Updates when you click “Calculate”. Amounts are monthly at retirement (illustrative).
How the pension gap calculator works
This pension gap calculator for Germany is built around a simple planning equation: Target income in retirement − expected income in retirement = pension gap. The difference is your monthly Rentenlücke (gap), expressed in today’s money and/or inflated to your retirement age (depending on your assumptions).
Many calculators fail because they hide assumptions. We make them visible:
- Target retirement income: You choose a percentage of today’s net income (e.g., 70–90%).
- Inflation: You can inflate today’s target into future euros.
- Expected statutory pension: You enter your best estimate (ideally from the Renteninformation).
- Other retirement income: Company pension (bAV), private pensions, rental net income, etc.
- Planning assumptions: A safe withdrawal rate (SWR) and an investment return assumption for estimating a “capital needed” and “monthly saving needed” planning range.
The output gives you a planning range. If you want precision, the next step is always the same: improve the input quality. For example, replacing a guess with your official Renteninformation estimate can significantly change the result. Deutsche Rentenversicherung explains the Renteninformation and why it is an annual planning tool. DRV overview.
Why expats in Germany often have a larger pension gap
Expats are more likely to have career breaks, international moves, and periods of self-employment—each of which can affect pension entitlements. Even without breaks, expats often start contributing later, contribute in multiple systems, or plan to retire outside Germany (where cost of living and healthcare rules differ). That’s why “pension gap Germany” searches are often about uncertainty: people don’t know what number to trust.
The calculator helps you reduce that uncertainty: it gives you a baseline scenario you can refine. It also encourages the habit of checking your official pension account records and ensuring your insurance history is complete—something DRV itself recommends in its information materials. If your insurance record misses periods (e.g., education, childcare credits, or work histories), the long-term effect can be meaningful.
Net vs gross: what you should use
We use net monthly income because most people define their lifestyle in net terms: rent/mortgage, groceries, travel, and family costs. Pension statements and income documents can be gross or net; what matters is consistency. If your statutory pension estimate is gross, you can still use it—just treat the output as an approximation and focus on getting all inputs on the same basis later.
How to interpret “capital needed” and “monthly saving needed”
The calculator’s “capital needed” estimate uses a safe withdrawal rate (SWR) as a simplified rule of thumb. It converts your annual gap into a rough capital target: capital ≈ annual gap ÷ SWR. This is helpful for intuition (“Is my gap a €50k problem or a €500k problem?”), but it is not a substitute for a full financial plan.
The “monthly saving needed” then estimates how much you’d have to invest each month (under your assumed return) to reach that capital by retirement. This is useful for prioritization: if the number is manageable, you might focus on consistent investing; if it’s very high, you may need multiple levers (later retirement, higher contributions, lower target, additional income streams, etc.).
Common reasons for a pension gap in Germany
Pension gaps are not caused by a single factor. The most common drivers include:
- Lower replacement rates than people expect (your pension replaces less of your income than your “mental model”).
- Career interruptions (unemployment, parental leave, time abroad without contributions).
- Starting late in Germany (shorter contribution history in the German system).
- Longer retirement horizons (planning for 20–30 years in retirement increases the need for stable income).
- Inflation (future euros buy less; targets should often be inflation-adjusted).
This page is designed to address these systematically: define your target, add what you can rely on, and calculate the gap. Then use the result to decide your next best action.
OECD example: replacement rates and an example pension gap in Germany
A useful way to sanity-check pension expectations is the concept of a net replacement rate—how much of your working income is replaced by pension income. The OECD provides model-based comparisons for countries, including Germany.
In the OECD’s Pensions at a Glance 2025 – Germany country note, the OECD reports a future net replacement rate of 53.3% from mandatory pensions for an average earner entering the labour market at age 22 in 2024 with a full career on average earnings (a model scenario). The same note references the OECD average of 63.2% for comparable mandatory schemes. It also states that including voluntary private pension schemes, the German replacement rate can increase to 68.0% under their assumption of full-career contributions of 4%. OECD Germany country note (web) · OECD Germany country note (PDF).
Illustrative scenario (not personal advice)
If your net income is €3,200/month and you aim for 80% in retirement (€2,560/month), a 53.3% mandatory replacement rate implies roughly €1,706/month from mandatory pensions (model scenario), leaving a gap of ~€854/month before other income sources. Adding a company pension or investments may reduce that gap.
Graph: OECD replacement-rate scenario (Germany vs OECD average)
This graph visualizes the OECD figures cited above (model scenario). It helps explain why many people see a “pension gap Germany” problem in practice.
Sources: OECD Pensions at a Glance 2025 – Germany (replacement rates and OECD average). OECD web · OECD PDF
Use official pension information where possible
OECD statistics are useful for context, but your personal plan should be based on your real contribution history. The best starting point is usually your Renteninformation. DRV publishes both a web overview and a short explainer brochure that helps you interpret the statement. DRV web overview · DRV brochure (PDF).
If you want broader context on pensions in Germany (trends, key figures, and regional facts), DRV’s Rentenatlas 2024 is a helpful reference: Rentenatlas download page.
FAQ: Pension gap for expats in Germany
What is the “Renteninformation” and why does it matter for your pension gap?
The Renteninformation is an annual statement from the German statutory pension system that shows your current pension entitlements and projections under assumptions. It’s one of the best inputs for a pension gap calculation because it is based on your personal contribution history.
DRV overview: Meine Post von der Rente.
Is this pension gap calculator net or gross?
It’s designed for net monthly income, since lifestyle planning typically happens in net. If you only have gross inputs, you can still use the calculator—just keep inputs consistent and interpret the result as a planning approximation.
Does the calculator include taxes and health insurance?
No. This tool is a simplified estimator. Taxes, health insurance, inflation, and changing laws can significantly change real outcomes. Use the calculator to identify the size of the problem, then refine with personal planning.
Can I include pensions from other countries?
Yes—use “Other retirement income” to include pension payments from other countries or other retirement income sources. Cross-border pension planning can be complex; consider professional guidance if your situation spans multiple systems.
Data sources & references
- OECD – Pensions at a Glance 2025: Germany country note (replacement rates, OECD averages): Web · PDF
- OECD – Pensions at a Glance 2025 (replacement-rate methodology and OECD average): OECD chapter
- Deutsche Rentenversicherung – Renteninformation overview: DRV web page
- Deutsche Rentenversicherung – “Die Renteninformation – mehr wissen” (PDF brochure): DRV PDF
- Deutsche Rentenversicherung – Rentenatlas 2024: Download page
For a personal plan (especially with international pensions), book an appointment: Finanz2Go Calendly.
Pension Gap Calculator Germany: Close Your Rentenlücke and Secure Your Retirement
Planning your retirement in Germany can be complex — especially if you’re an expat navigating multiple pension systems. The Pension Gap Calculator Germany by Finanz2Go helps you estimate your Rentenlücke (pension gap), so you can see how much income you’ll have in retirement, how big the gap is, and what to do about it.
With this free calculator, you can:
- Estimate your future pension income and monthly gap
- Understand how much capital you’ll need at retirement
- See how much to invest each month to close your Rentenlücke
- Learn how expats in Germany can optimize their pensions and investments
Whether you’re new to Germany or preparing for retirement abroad, this guide explains how to plan your pension, invest tax-efficiently, and protect your lifestyle.
What Is a Pension Gap (Rentenlücke) in Germany?
Your pension gap is the difference between the income you want in retirement and the income you’re expected to receive.
Let’s say you earn €3,500 net per month today and aim for 80% of that in retirement (€2,800).
If your estimated pension is €1,900, your monthly Rentenlücke is €900 — money you’ll need to cover from personal savings or investments.
Why It Matters
Most people assume the German state pension will replace most of their income — but in reality, the average replacement rate is only 53.3%, according to the OECD Pensions at a Glance 2025 report. That’s below the OECD average of 63%.
This shortfall makes personal planning essential, especially for expats with shorter contribution histories.
How the Pension Gap Calculator Germany Works
Our calculator uses a simple equation:
Target income in retirement – expected income = pension gap
You can:
- Define your target income (e.g., 80% of current net pay)
- Enter your expected pension (from your Renteninformation or estimate)
- Add private or company pensions
- View your results instantly
You’ll see:
- Your monthly pension gap in today’s euros
- Capital needed to fund that gap (based on your assumptions)
- Monthly investment target to close the gap before retirement
💡 Tip: The results are simplified estimates. Real-life outcomes depend on taxes, inflation, and market returns — but this tool gives you a clear starting point.
The Three Pillars of the German Pension System
Germany’s pension system combines three main sources of retirement income — known as the three pillars (Drei-Säulen-Modell).
1️⃣ Statutory Pension (Gesetzliche Rente)
The foundation of retirement in Germany. Funded by mandatory social contributions, it provides a base income based on:
- Years of contribution
- Average income over your working life
- Current pension value set by law
Expats can check their entitlements through their annual Renteninformation from the Deutsche Rentenversicherung (DRV).
2️⃣ Company Pension (Betriebliche Altersvorsorge – bAV)
Many employers offer a bAV plan that supplements your state pension. Contributions can be tax-deductible, and employers often match part of your input.
However, rules vary — and if you move abroad, transferring your bAV can be complex.
3️⃣ Private and Investment-Based Pensions
Private savings, ETFs, real estate, and pension contracts (like Rürup or Riester) form the third pillar.
For expats, this is the most flexible and powerful way to close the Rentenlücke, offering independence and global mobility.
Why Expats in Germany Often Have a Larger Pension Gap
Expats face unique pension challenges:
- Shorter working periods in Germany
- Years abroad not counted by DRV
- Delayed pension contributions
- No access to employer pensions (bAV)
- Plans to retire in another country
Even high-earning professionals often find their Rentenlücke 30–40% higher than expected.
That’s why our calculator includes flexible input options for foreign pensions, company benefits, and investment assumptions — so expats can plan confidently.
How to Interpret “Capital Needed” and “Monthly Saving Needed”
To help you visualize your goal, the calculator estimates the total capital required to fund your monthly pension gap — using a Safe Withdrawal Rate (SWR) of around 4%.
For example:
- Pension gap: €1,000/month
- Annual gap: €12,000
- SWR: 4%
➡️ Capital needed: €12,000 ÷ 0.04 = €300,000
The calculator then tells you how much you’d need to invest monthly (based on your assumed annual return) to reach that target.
This transparent approach helps you plan effectively — without complex formulas.
Common Causes of Pension Gaps in Germany
Your Rentenlücke can grow for many reasons:
- Low replacement rates from the state pension
- Career breaks (e.g., parental leave, unemployment)
- Freelance or self-employed periods without DRV contributions
- Late entry into the German pension system
- Inflation eroding purchasing power
- Longer life expectancy (more years of retirement income needed)
Understanding these drivers helps you take action early — by saving, investing, or adjusting your retirement expectations.
Strategies to Close the Pension Gap in Germany
1. Start Investing Early
Time is your greatest ally. Even €200/month invested for 30 years at 6% can grow to nearly €200,000.
ETFs and index funds offer a simple, low-cost way to build long-term wealth.
2. Use Tax-Advantaged Pension Products
Consider:
- Rürup (Basisrente) — tax-deductible for self-employed or freelancers
- bAV (company pension) — tax savings + employer contributions
- Private ETFs or robo-advisors — flexibility and global exposure
A financial advisor can help you combine these efficiently.
3. Diversify Across Countries
If you might retire abroad, diversify in multiple currencies and markets. Global ETFs reduce risk and align with your lifestyle flexibility.
4. Reassess Annually
Update your plan each year as income, location, or tax laws change. The earlier you adjust, the easier it is to stay on track.
OECD Example: Pension Gap in Germany vs OECD Average
The OECD’s Pensions at a Glance 2025 – Germany report highlights:
| Scenario | Net Replacement Rate |
|---|---|
| Germany (mandatory pensions) | 53.3% |
| OECD Average | 63.2% |
| Germany (with private pensions) | 68.0% |
Example:
If you earn €3,200/month net and aim for 80% income (€2,560) in retirement, but receive €1,706 from your pension, your gap is €854/month — or roughly €250,000 capital to fund it.
This shows why early investing is crucial.
Use Your Renteninformation as the Starting Point
Your annual Renteninformation from the Deutsche Rentenversicherung (DRV) is the best way to assess your current pension status. It shows:
- Your total contributions
- Estimated monthly pension at retirement
- Missing contribution periods
🔗 DRV web overview
🔗 DRV brochure (PDF)
Check it annually — and report missing employment or education years to increase your entitlements.
ETF Investing as a Retirement Strategy for Expats
Exchange-Traded Funds (ETFs) are one of the most effective ways to close your Rentenlücke.
Benefits:
- Low cost (TER often <0.3%)
- Global diversification
- Transparent and flexible
- Easy to automate monthly
Example Portfolio:
- 70% Global Equity ETF (e.g., MSCI World + Emerging Markets)
- 20% Bonds or Money Market ETFs
- 10% Real Estate or Commodities
By investing through tax-efficient brokers or pension wrappers, you can build long-term wealth while maintaining international flexibility.
Tax Considerations for Expats in Germany
Germany’s tax system offers opportunities if structured correctly:
- Rürup pension contributions are up to 100% tax-deductible (within limits)
- ETF capital gains benefit from a 30% tax exemption for equity funds
- Double taxation treaties protect expats from being taxed twice
A tailored plan ensures you use every available tax advantage while complying with local regulations.
Why Early Planning Pays Off
The earlier you start, the less you’ll need to invest monthly to achieve the same goal.
| Years to Retirement | Monthly Saving for €300,000 (6% return) |
|---|---|
| 35 years | €220 |
| 25 years | €440 |
| 15 years | €980 |
Starting early gives you compound growth, lower financial stress, and a better retirement cushion.
Frequently Asked Questions
Can I combine pensions from multiple countries?
Yes. Under EU coordination rules, your pension rights from different member states are aggregated for eligibility. Each country pays its share separately.
What if I move away from Germany?
Your DRV contributions remain valid. You’ll still receive your German pension even if you retire abroad.
Should I use gross or net figures in the calculator?
Either works — just stay consistent. We recommend net income, since lifestyle goals are based on take-home pay.
Can I include my private savings or ETFs?
Yes. Enter your current capital and expected return to project your total retirement assets.
Create Your Personal Pension Plan
The Pension Gap Calculator Germany gives you a clear overview — but your personal retirement plan should go further.
Finanz2Go specializes in independent financial planning for expats in Germany, integrating:
- Statutory and private pensions
- ETF portfolios
- Tax optimization strategies
- Cross-border retirement planning
👉 Book your free consultation here
Get your pension gap analyzed, your portfolio optimized, and your retirement plan aligned with your goals.
Final Thoughts
Germany’s pension system offers stability, but not sufficiency — especially for international professionals.
By understanding and acting on your Rentenlücke early, you can take control of your future.
The Finanz2Go Pension Gap Calculator Germany empowers you to:
- Quantify your pension gap
- Build a realistic investment strategy
- Optimize taxes as an expat
- Retire with confidence and freedom
Start today — your future self will thank you.