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Emigrating with a small pension: How to realise your dream of retiring abroad!
The dream of emigrating doesn't have to remain a dream, even if your pension is not abundant. Many countries offer lower living costs and attractive conditions for retirees. Discover your options and how to optimally plan your retirement abroad. Need support with planning? Contact us for personalised advice!
The topic short and concise
The dream of emigrating doesn't have to remain a dream, even if your pension is not abundant. Many countries offer lower living costs and attractive conditions for retirees. Discover your options and how to optimally plan your retirement abroad. Need support with planning? Contact us for personalised advice!
The dream of emigrating doesn't have to remain a dream, even if your pension is not abundant. Many countries offer lower living costs and attractive conditions for retirees. Discover your options and how to optimally plan your retirement abroad. Need support with planning? Contact us for personalised advice!
The dream of emigrating doesn't have to remain a dream, even if your pension is not abundant. Many countries offer lower living costs and attractive conditions for retirees. Discover your options and how to optimally plan your retirement abroad. Need support with planning? Contact us for personalised advice!
Dreaming of retirement under palm trees, but your pension is tight? This article shows you how to emigrate with a small pension and still improve your standard of living. Find out everything about the best countries, health insurance, taxes, and more!
The dream of retirement under palm trees doesn't have to remain a dream, even if your pension isn't ample. Many are drawn abroad in their later years to enhance their standard of living and enjoy life to the fullest. But how can the dream of emigrating with a small pension be realised? We at GoMovin, your experts in international relocations, show you how to plan your retirement abroad and which countries are particularly suitable for pensioners on a small budget.
Why do retirees move abroad?
The reasons for emigrating at retirement age are varied. Often, financial aspects play a crucial role. In many countries, the cost of living is significantly lower than in Germany. This affects not only living costs but also expenses for food, leisure activities, and even healthcare. Thus, with a small pension, you can enjoy a significantly higher standard of living abroad. However, other motives like a milder climate, a higher quality of life, or the desire to fulfil a lifelong dream can also play a part. Some retirees are also attracted by the linguistic familiarity of German-speaking regions.
Challenges and Opportunities
Emigrating with a small pension offers both opportunities and challenges. Opportunities include financial relief, the chance to experience new cultures and gather experiences, and an improved quality of life. However, you should not underestimate the challenges either. Language barriers, cultural integration, social isolation (especially after the death of a partner), organising healthcare, and financial planning are important aspects you should consider. Good preparation is therefore essential. We are happy to support you in planning and implementing all aspects of your move abroad. Find out more here about our relocation assistance.
Living on a Budget: The Best Countries for Retirees with a Small Budget
Where can you live well on a small pension? This is a question many retirees ask themselves when contemplating moving abroad. Fortunately, there are numerous countries suitable for retirement on a modest budget. It's not just the cost of living that matters, but also the climate, infrastructure, and healthcare. The "Global Retirement Index", for example, ranks countries based on factors such as cost of living, climate, healthcare, and visa regulations, specifically for retirees.
Europe
Within Europe, Southern and Eastern Europe are particularly appealing. Spain attracts with lower living costs (11% less than Germany), although you should note the double taxation agreement, which from 2025, includes up to 5% tax on gross pensions (civil service pensions are exempt). Greece offers even lower living costs (19% less than Germany), while Bulgaria and Romania are significantly cheaper, with 45% and 46% lower costs respectively. In Italy, EU citizens only need health insurance and sufficient income. Find out more about retiring to Bulgaria.
Outside Europe
There are also attractive options outside Europe. In Asia, Malaysia offers an interesting alternative with living costs 52% lower than Germany. In Latin America, Colombia, Ecuador, Panama, and Costa Rica entice with affordable living conditions and attractive residency permits. Colombia requires a pension of at least €678 (as of January 2023) for the M-11 visa. Ecuador requires a pension three times the basic income (approx. €1269.30 as of January 2023) for the "Visa de Residencia Temporal – Jubilado". Panama requires a monthly pension of around €927 for a permanent residence permit and Costa Rica has a "Pensionado" programme that requires a minimum pension of €930 per month. Please note these figures can change at any time and should be checked in advance.
Important Notice
Before deciding on a country, you should definitely undertake trial stays. This will allow you to gain an understanding of the local living conditions and determine if you feel comfortable in the respective country.
Financial Security: Pensions, Taxes, and Health Insurance in Focus
An important aspect of emigrating with a small pension is financial planning. Here, the pension, taxes, and health insurance play a crucial role. It is important to inform yourself thoroughly in advance to avoid unpleasant surprises.
Pension Entitlement and Payment
In principle, German pensions are also paid abroad. You should apply for the pension in your country of residence. An exception can be the reduced earning capacity pension, which is linked to the German labour market and may therefore be restricted. The amount of pension can change depending on residency status (temporary vs. permanent), country of residence, and consideration of foreign working periods in the German pension calculation. The German Pension Insurance offers comprehensive information on this.
Taxation of Pensions Abroad
To avoid unnecessary tax burdens, you should inform yourself about double taxation agreements (DTA). These are generally available within the European Economic Area (EEA). Outside the EEA, you should consult a tax advisor or the pension fund. The Neubrandenburg Tax Office is responsible for tax questions. Since 2005, pensions have been taxed individually (deferred taxation). Note that in the event of a move outside the EU/EEA, allowances for the Riester pension may have to be repaid. Inform yourself thoroughly about the tax implications of your move.
Health Insurance Abroad
Health insurance is another important point. Within the EU, German statutory health insurance generally remains in place if you were previously mandatorily insured. Voluntary health insurance may be subsidised under certain circumstances. Outside the EU, German statutory health insurance generally expires. In this case, you will need private international health insurance. Look for long-term, comprehensive policies that cover pre-existing conditions. For a return to Germany, maintaining a membership with German statutory health insurance may be advisable. Read more about health insurance when emigrating to Greece.
Health Safety: What Pensioners Need to Consider in Care
Healthcare Abroad is a central issue for retirees who wish to emigrate. A good health insurance policy is essential to protect against high treatment costs. There are various options available, depending on the choice of country.
State vs. Private Health Insurance
Within the EU/EEA, German state health insurance generally applies. Outside the EU/EEA, private health insurance is necessary. Pay attention to age restrictions and the exclusion of pre-existing conditions. However, there are also private international health insurance policies that cover pre-existing conditions and offer unlimited duration, such as policies from Globality. We are happy to advise you on choosing the right health insurance for your stay abroad.
Preservation of Rights for Returnees
If you plan to return to Germany later, you should conclude a preservation of rights with your German state health insurance. This ensures that upon your return, you can be re-admitted without any issues. Reiseversicherung.com offers further information on this.
Successful Integration: Social Contacts and Cultural Adaptation
In addition to financial and health aspects, cultural and social integration also play an important role when emigrating with a small pension. Language barriers, cultural differences, and social isolation can affect the quality of life abroad. Therefore, it is important to actively strive for integration.
Overcoming Language Barriers
Attend language courses before and after emigrating to improve your language skills. This makes everyday communication easier and helps you to make contacts. A willingness to adapt to new customs and traditions is also crucial for successful integration.
Making Social Contacts
Seek contact with other Germans abroad, for example, in German clubs. However, contact with locals is also important to feel comfortable in the new environment. Avoid isolation, especially after the death of a partner.
Plan with confidence: The ultimate checklist for your emigration
To make your dream of emigrating with a small pension a reality, we have put together a checklist for you:
Financial Planning: Create a detailed account of your monthly income and expenses, taking into account the costs of relocation, accommodation, and potential healthcare.
Health Insurance: Get appropriate health insurance and clarify coverage for pre-existing conditions.
Residency and Visa: Find out about the necessary documents and visa requirements.
Language and Culture: Improve your language skills and familiarize yourself with the culture of your destination country.
Social Network: Build a social network before and after emigration.
Stay Flexible: Exploring Alternatives to Permanent Emigration
Not everyone wants to emigrate permanently. An alternative can be wintering abroad. Spend several months of the year in a more affordable country to escape the German winter and boost your pension. Regular holidays can also be a way to enhance your quality of life without emigrating permanently.
Dream Destination Retirement: Achieving Success with Careful Planning
Emigrating with a small pension is a decision that should be well considered. Weigh up the opportunities and risks and take into account your personal preferences and needs. With careful planning and the right support, you can fulfil your dream of retiring abroad. At GoMovin, we are pleased to assist you every step of the way – from planning to implementation. Learn more about retiring to Portugal.
The number of German retirees spending their retirement abroad is continuously increasing. This shows that emigrating with a small pension is indeed possible. It is important to gather extensive information in advance and seek professional support. This way, you can realise your dream of retiring abroad and enjoy a carefree life. "Germans Abroad" offer further information on this topic.
At GoMovin, we are happy to help you make your move abroad stress-free and efficient. From planning to execution, we are at your side with our expertise. Contact us today for a no-obligation consultation. Find out more about our insurance services here.
GoMovin: Your partner for a relaxed retirement abroad
At GoMovin, we understand that moving to a new country can be a significant challenge, especially during retirement. That's why we offer comprehensive support tailored to your individual needs. We assist you in planning, organising, and executing your move, so you can look forward to your new chapter in life with ease. Our goal is to make the transition as simple and pleasant as possible. Contact us today to learn more about our services and make your dream of retiring abroad a reality.
Further useful links
The Deutsche Rentenversicherung provides comprehensive information on the payment of your pension abroad and the conditions associated with it.
The "Deutsche im Ausland" offer additional information and advice on retirement abroad.
FAQ
Which countries are particularly suitable for retiring abroad on a low pension?
Many retirees prefer to move to countries with lower living costs. Popular options include Southern and Eastern Europe (e.g., Bulgaria, Greece, Spain) as well as Latin America (e.g., Colombia, Ecuador, Costa Rica) and Asia (e.g., Malaysia). These countries often offer a better quality of life at lower expenses.
What financial aspects must I consider when retiring abroad on a low pension?
Important aspects include pension entitlements, taxation of the pension abroad (consider double taxation agreements!) and health insurance. Make sure to thoroughly research the respective regulations in the destination country to avoid financial surprises.
How does health insurance affect retiring abroad on a low pension?
Within the EU/EEA, German statutory health insurance often remains in place, while outside of it a private international health insurance is required. Holding a right of reinstatement for returning to Germany can be advisable.
What happens to my Riester pension when I retire abroad?
If you move outside the EU/EEA, subsidies for the Riester pension may have to be paid back. Check with your provider in advance.
How can I avoid social isolation abroad?
Seek contact with other Germans abroad, join clubs, and make connections with locals. Language courses and a willingness to adapt culturally are also helpful.
What role do trial stays play in planning to retire abroad on a low pension?
Trial stays are essential to get to know the living conditions on-site and to determine if you feel comfortable in the respective country. Use this opportunity to gain a realistic impression.
Where can I find information about the taxation of my pension abroad?
For tax questions related to pensions abroad, the Neubrandenburg Tax Office is responsible. Get information there about applicable regulations and double taxation agreements.
What documents do I need for retiring abroad as a pensioner?
In general, you will need a valid passport, possibly a visa, or a residence permit. Gather information in good time about the specific requirements of the destination country.
