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Emigrating and Your Pension: What You Need to Know About Your Pension Entitlements Abroad
The dream of living abroad can become a reality! But what happens to your pension if you emigrate? This article highlights the most important aspects of your pension entitlement abroad. For personal advice and support with your move, our team is at your disposal. Get in touch here.
The topic short and concise
The dream of living abroad can become a reality! But what happens to your pension if you emigrate? This article highlights the most important aspects of your pension entitlement abroad. For personal advice and support with your move, our team is at your disposal. Get in touch here.
The dream of living abroad can become a reality! But what happens to your pension if you emigrate? This article highlights the most important aspects of your pension entitlement abroad. For personal advice and support with your move, our team is at your disposal. Get in touch here.
The dream of living abroad can become a reality! But what happens to your pension if you emigrate? This article highlights the most important aspects of your pension entitlement abroad. For personal advice and support with your move, our team is at your disposal. Get in touch here.
Planning your retirement abroad? Discover everything important about your pension entitlements, healthcare, and tax aspects. Get informed now and emigrate worry-free!
Basics of Pension Entitlement When Emigrating
What Does "Emigrating" Mean in the Context of Pensions?
Emigrating in retirement means you wish to spend your later years outside of Germany. This raises important questions regarding your pension entitlement, health insurance, and tax obligations. It is crucial to address these aspects early to ensure financial security abroad. The German Pension Insurance (DRV) plays a key role here, as it is responsible for the payment of your pension and clarification of your entitlements.
Who is Entitled to a German Pension Abroad?
In principle, various groups of people are entitled to a German pension abroad:
EU/EEA Citizens: Within the European Union (EU), the European Economic Area (EEA), and Switzerland, there are special regulations that allow for unrestricted pension payments.
Citizens from Countries with Social Security Agreements: Germany has concluded social security agreements with some countries, which regulate pension entitlements. Examples of these include the USA, Australia, and Brazil.
Citizens from Third Countries: For citizens from third countries with which there is no social security agreement, special provisions apply that may lead to reductions in the pension.
The Role of the German Pension Insurance (DRV)
The German Pension Insurance (DRV) is your main contact for all matters related to your pension abroad. They inform you about your individual entitlements, possible reductions, and the necessary formalities. It is advisable to get in touch with the DRV well in advance of emigration to clarify all relevant aspects. The DRV can also advise you on whether there is a social security agreement with your destination country and what impact this has on your pension.
Full Pension Payments in the EU: How to Secure Your Entitlements
Pension Payments in EU/EEA Countries and Switzerland
Full Pension Payment: What Does It Mean?
Within the EU/EEA countries and Switzerland, pension payments are generally made in full. This means you will receive your full German pension even if you move your residence to one of these countries. This applies to both old-age pensions and disability pensions. However, it is important to note that the taxation of your pension might differ abroad. Therefore, make sure to inform yourself in good time about the applicable tax laws in your destination country.
Crediting of Insurance Periods in Various EU Countries
If you have worked in different EU countries, your insurance periods are typically aggregated to determine your pension entitlement. This ensures that you do not suffer disadvantages if you have worked in different countries during your working life. The EU Regulations No. 883/2004 and No. 987/2009 coordinate the social security systems within the EU and ensure that your pension entitlements are calculated correctly. Further information can be found on Europa.eu.
The Principle of Aggregating Contribution Periods
The principle of aggregating contribution periods means that the pension insurance providers of the various EU countries add up your contribution periods to determine whether you meet the minimum insurance period required for a pension claim. For example, if you have worked in Germany for only four years but in another EU country for an additional two years, these periods will be combined to reach the required minimum insurance period of five years. This is particularly important if you have worked for only a short time in a particular country. The German Pension Insurance Association is an important point of contact in this regard.
Form P1: Notification of Pension Decisions
The Form P1 serves as a notification of pension decisions from the various EU countries where you have worked. It informs you about the amount of your pension entitlements and the conditions under which the pension is paid. This form is an important part of the pension application process and helps you keep track of your pension entitlements. It is advisable to carefully keep all P1 forms and present them to the DRV if necessary.
Social security agreements ensure pension payments: USA, Australia & Co.
Pension Payments in Countries with Social Security Agreements
Which countries have social security agreements with Germany?
Germany has established social security agreements with a number of countries to regulate pension payments. These agreements are intended to ensure that pensioners have entitlement to their German pensions even when living abroad. Countries with such agreements include the USA, Australia, Brazil, Turkey, and the United Kingdom. A complete list of countries with social security agreements can be found on the website of the Deutsche Rentenversicherung.
Special conditions and exceptions in pension payments
Even when a social security agreement exists, there are certain special conditions and exceptions regarding pension payments. For instance, foreign contribution periods may not always be fully credited. Therefore, it is advisable to seek advice from the DRV before emigrating to avoid possible reductions or restrictions. Particularly displaced persons or resettlers should consider the regulations of former GDR agreements, as these can affect pension payments.
Disability pensions and the Foreign Pensions Act
Special regulations may apply to disability pensions and claims under the Foreign Pensions Act. For example, the disability pension is not always paid in full abroad, especially if the disability is not due to a work accident or occupational disease. The Foreign Pensions Act governs the crediting of working periods completed abroad. Here too, individual advice from the DRV is essential to accurately determine your entitlements.
Pension Entitlement in Third Countries: How to Avoid Reductions – Here's How
Retirement payments in non-agreement third countries
Strict regulations and potential reductions
In non-agreement third countries, strict regulations often apply, which may lead to reductions in your pension. It is therefore particularly important to thoroughly inform and advise yourself before emigrating to such a country. The DRV can provide you with information on the regulations in your destination country and how you can avoid potential reductions. Note that nationality can play a decisive role.
Necessity of consultation with the DRV
Given the complex regulations, individual consultation with the DRV is essential if you wish to emigrate to a non-agreement third country. The DRV can help you check your pension entitlements, calculate possible reductions, and provide you with tips on how to optimise your financial situation abroad. It is advisable to contact the DRV early to clarify all relevant aspects.
Importance of nationality
Your nationality can have a considerable impact on your pension entitlement abroad. For example, different regulations often apply to citizens from non-EU countries compared to EU citizens. The DRV can inform you about the regulations that apply to your nationality and how this affects your pension. It is important to have all relevant documents and evidence ready to prove your nationality and pension entitlement.
Refund of pension contributions for non-EU citizens
Under certain conditions, non-EU citizens can apply for a refund of their pension contributions. This is possible, for example, if you are exempt from compulsory insurance (e.g. as a doctor, lawyer, or civil servant) and have not met the minimum insurance period of five years. Those who have reached the regular retirement age (67 years) but have not met the minimum insurance period can also apply for a refund. Presseportal.de provides further information on this topic.
Requirements and deadlines
The requirements for a refund of pension contributions are strict. You must, for instance, prove that you can no longer voluntarily pay into the German pension insurance. The application for a refund can be submitted at the earliest two years after the last contribution payment. It is advisable to inform yourself early about the exact requirements and deadlines to avoid losing any entitlements.
Differences between countries with and without agreements
The rules for the refund of pension contributions may vary depending on the existence of a social security agreement. In countries without an agreement, the number of working years completed in Germany is irrelevant for eligibility. The DRV can provide you with information about the regulations that apply to your case and what documents you need to apply for a refund.
Planning to emigrate: How to secure your pension abroad
Important aspects before emigrating: Planning and formalities
Early contact with the German Pension Insurance
Contacting the German Pension Insurance early is essential to clarify all important aspects of your pension abroad. The DRV can provide information about your individual entitlements, potential reductions, and the necessary formalities. Allow ample time to resolve any questions to avoid unpleasant surprises. The Volksbank Raiffeisenbank also offers important guidance on this.
Obligation to notify of a change of residence (at least 3 months in advance)
You are obliged to inform the DRV of your change of residence in advance, ideally at least three months in advance. This ensures that your pension payments are not interrupted and you continue to receive all important information. When notifying of your change of residence, be sure to provide your pension insurance number and new address.
Correct specification of IBAN and BIC
Make sure to inform the DRV of your correct IBAN and BIC so that your pension can be transferred to your foreign account without any problems. Incorrect information can lead to delays or even a suspension of pension payments. Check your information carefully before submitting it to the DRV.
Certificate of life: Annual proof of existence
The DRV requires an annual certificate that you are still alive, known as the Certificate of Life. This certificate must be issued by an authority or another authorized body in your country of residence. The DRV automatically sends you the form for the certificate of life. Complete the form and have it confirmed by an authorized body. Then promptly return the confirmed certificate of life to the DRV.
Digital proof of life (DPL) in selected countries
In some countries, the digital proof of life (DPL) is already being tested. This allows you to prove your existence online without having to fill out a form and have it confirmed by an authority. However, the DPL is not yet available in all countries. Check with the DRV to see if the DPL is available in your country of residence.
Tax aspects: Double Taxation Agreement (DTA)
Taxation of your pension abroad can be complex. Germany has concluded Double Taxation Agreements (DTA) with many countries, which determine in which country your pension will be taxed. Inform yourself about the applicable DTA in good time to avoid double taxation. The 1822direkt also offers important guidance on this.
Limited tax liability and exemption threshold
If you relocate your residence abroad, you will generally have limited tax liability in Germany. This means you are only taxable in Germany on your domestic income. However, the exemption threshold that is tax-free in Germany generally does not apply with limited tax liability. This can lead to a higher tax burden.
Application for unlimited tax liability
Under certain conditions, you can apply for unlimited tax liability, even if you live abroad. This is possible, for example, if you continue to earn income in Germany that makes up at least 90 percent of your total income. Applying for unlimited tax liability allows you to continue using the exemption threshold and other tax benefits.
Neubrandenburg Tax Office (RiA)
The Neubrandenburg Tax Office (RiA) is responsible for pensioners residing abroad. The Neubrandenburg Tax Office (RiA) is your contact for all tax questions regarding your foreign pension. You can contact the Neubrandenburg Tax Office (RiA) directly with your questions and concerns.
Health insurance abroad
Your health insurance is also an important aspect you should clarify before emigrating. Within the EU/EFTA countries and Switzerland, you are generally entitled to medical care through the S1 form. In countries with social security agreements, you may be able to stay in your German health insurance. In all other cases, you will need international health insurance or must join the local healthcare system. GoMovin offers you comprehensive advice on this.
S1 form for EU/EFTA/Switzerland
With the S1 form, you are entitled to medical care in all EU/EFTA countries and Switzerland. The S1 form is issued by your German health insurance and must be presented to the responsible health insurance in your country of residence. With the S1 form, you are entitled to the same benefits as residents in your country of residence.
German health insurance in countries with agreements
In countries with social security agreements, you may be able to remain in your German health insurance. However, this is not always the case. Check with your health insurance to see if you can remain insured in your destination country. Note that you may be required to make co-payments for certain services.
International health insurance or local systems
If you do not live in an EU/EFTA country or a country without a social security agreement, you need international health insurance or must join the local healthcare system. The costs for international health insurance can be high, especially for older people. Therefore, find out about the various offers and tariffs in good time. GoMovin assists you in selecting the right insurance.
Eligibility for return to Germany
If you plan to return to Germany later, you should make an eligibility agreement with your German health insurance. The eligibility secures your future re-entry into the German health insurance under the same conditions as before your emigration. This can be sensible if you do not have comprehensive insurance coverage abroad or if you fear that you will not be able to obtain health insurance upon your return to Germany.
Nursing care insurance abroad
Nursing care insurance is also an important aspect to clarify before emigrating. Find out if you are entitled to nursing care benefits abroad and what benefits you are entitled to. You may need private supplementary nursing insurance to cover your care needs abroad.
Retirement Abroad: Financial Planning for Retirement
Financial Planning and Additional Benefits
Bank Fees and Currency Losses
When paying pensions abroad, bank fees and currency losses may occur. Consult with your bank about charges for international transfers and exchange rates. It might be sensible to open an account in your country of residence to save on fees. Also, pay attention to the exchange rates, as they can change daily and reduce your pension.
Riester Pension and Wohn-Riester Abroad
If you have a Riester pension or Wohn-Riester, you should be informed about the impact on your allowances before emigrating. Generally, you have to repay the allowances if you move your residence outside the EU/EWR countries. Within the EU, you may continue to receive the allowances under certain conditions. Wohn-Riester can even be used to finance EU properties if they are owner-occupied.
Conditions for Receiving Allowances
The conditions for receiving allowances for Riester pension and Wohn-Riester abroad are strict. For example, you must prove that you are still liable for tax in Germany or that your residence is in an EU/EWR country. Obtain timely information on the exact conditions to avoid losing allowances.
Financing EU Properties
Wohn-Riester can be used for the financing of EU properties if they are owner-occupied. This can be an attractive option if you plan to acquire a property abroad. Consult with your provider about the exact conditions and requirements.
ETFs and Securities Savings Plans as Retirement Provision
In addition to the state pension, ETFs and securities savings plans can be a sensible supplement to your retirement provision. Explore the various investment opportunities and choose products that suit your needs and risk tolerance. Note that securities can also carry risks. A GoMovin helps you select the right products.
Pension Abroad: Common Mistakes and How to Avoid Them
Frequently Asked Questions and Pitfalls
Will the pension be reduced when living abroad?
Whether your pension will be reduced while living abroad depends on various factors, particularly your country of residence and the existence of a social security agreement. In EU/EFTA countries and Switzerland, pension payments are usually made in full. In non-agreement third countries, reductions might occur. Ensure you obtain timely information from the DRV regarding applicable regulations.
Early pension payout upon emigration?
Under certain circumstances, you can request an early payout of your pension if you emigrate. This is possible, for example, if you are exempt from compulsory insurance and have not met the minimum insurance period. However, be aware that an early payout usually entails financial losses. More information about this topic can be found at Presseportal.de.
How long can a pensioner stay abroad?
The length of your stay abroad generally does not affect your pension entitlement. You can live abroad indefinitely as a pensioner without any reduction in your pension. However, you must continue to fulfill your notification obligations to the DRV and submit a life certificate annually.
What happens to the pension upon returning to Germany?
If you return to Germany after emigrating, your pension will continue to be paid. You just need to inform the DRV of your return and provide your new address. In some cases, you may need to reorganize your health insurance and tax matters.
Quality of Life Abroad: Climate, Costs and Safety
Klima, Lebenshaltungskosten und Sicherheit im Zielland
Niedrigere Lebenshaltungskosten in Süd- und Osteuropa
In many countries of Southern and Eastern Europe, the cost of living is significantly lower than in Germany. This can greatly improve your financial situation in retirement. Be sure to research the cost of living in your destination country before emigrating and compare it with the costs in Germany. Note that the cost of living can vary depending on the region and city. Capital.de also provides important insights on this.
Climate change and heatwaves in Southern Europe
The climate change and increasing heatwaves in Southern Europe are crucial aspects to consider when choosing your country of residence. Learn about the climatic conditions in your destination country and assess whether they are suitable for you. It may make sense to choose a country with a more moderate climate.
Climate resilience: Scandinavia as an alternative
As an alternative to Southern Europe, the Scandinavian countries are an option. They are characterized by high climate resilience and a good quality of life. However, the cost of living in Scandinavia is generally higher than in Germany. Research the different countries and regions and choose the one that best fits your needs.
Safety and political stability
Safety and political stability are also important factors to consider when choosing your country of residence. Research the political situation in your destination country and evaluate whether it is safe. It may be wise to select a country with stable political conditions and a low crime rate.
Pension entitlement abroad: Secure your future with GoMovin
Conclusion and Recommendations for Action
The Importance of Personalised Advice
The regulations regarding pensions abroad are complex and varied. Therefore, it is essential to seek personalised advice before emigrating. A bank advisor, insurer, lawyer, or tax advisor can help you analyse your individual situation and make the right decisions. Take advantage of this opportunity to ensure your financial security abroad.
Checklist for Retirees Before Emigrating
Here is a short checklist for retirees before emigrating:
Contact the DRV as early as possible.
Inform yourself about the regulations in your destination country.
Clarify your health and nursing care insurance.
Sort out your tax matters.
Review your pension provision.
Find out about the cost of living and safety in your destination country.
The Future of Pension Payments Abroad: Digitalisation and Flexibility
Digitalisation and increasing flexibility will change pension payments abroad in the future. The digital proof of life and the possibility to apply for pensions online will simplify the process. Increased flexibility in choosing your country of residence will also influence pension payments abroad. Stay informed and up to date with the latest developments.
We at GoMovin understand that planning your retirement abroad can be an exciting but also challenging task. That's why we offer you comprehensive relocation assistance covering all aspects of your international move. From the initial consultation to your arrival in your new home, we are at your side with our expertise and global network. We help you complete all necessary formalities, find suitable health insurance, and manage your tax affairs. With GoMovin, you can enjoy your retirement abroad with peace of mind and worry-free.
Are you ready to realise your dream of living abroad? Contact us today for personalised advice and find out how we can assist you with your move. Visit our website and register for free to benefit from our exclusive offers and services. We look forward to accompanying you on your journey into a new chapter of your life! Get in touch now!
Further useful links
The Deutsche Rentenversicherung (DRV) is your central point of contact for all questions regarding pensions abroad. Here, you will get information about your entitlements, possible reductions, and necessary formalities.
On Europa.eu, you will find information about the crediting of insurance periods in various EU countries and the coordination of social security systems within the EU.
FAQ
Who is eligible for German pension abroad?
As a rule, EU/EEC citizens, citizens from countries with social security agreements (e.g., USA, Australia), and under certain conditions, citizens from third countries are entitled to receive a German pension abroad. The specific conditions depend on the respective country and agreement.
How do I secure my full pension payment in the EU?
Within the EU/EEC countries and Switzerland, pension payments are usually made in full. It is important to have insurance periods from different EU countries credited and to inform yourself about the taxation of your pension in the destination country.
What happens to my pension if I emigrate to a country without a social security agreement?
In third countries without a social security agreement, strict regulations may apply that could lead to reductions in your pension. Individual advice from the DRV is essential to review your pension claims and avoid possible reductions.
How can I get a refund of my pension contributions?
Non-EU citizens may apply for a refund of their pension contributions under certain conditions, e.g., if they are exempt from compulsory insurance and have not met the minimum insurance period. The application can be submitted no earlier than two years after the last contribution payment.
What formalities must I complete before emigrating?
You should contact the German Pension Insurance early on, notify them of your change of residence (at least 3 months in advance), and provide your correct IBAN and BIC. Additionally, you will need an annual life certificate.
How does limited tax liability affect my pension?
If you move your residence abroad, you generally fall under limited tax liability in Germany. This means that the tax-free allowance is no longer available, which may lead to a higher tax burden. Under certain circumstances, you can apply for unlimited tax liability.
What should I consider regarding my health insurance?
Within the EU/EEC countries and Switzerland, you are usually entitled to medical care via the S1 form. In countries with social security agreements, you may be able to remain in your German health insurance. Otherwise, you will need international health insurance or must join the local health system.
What happens to my Riester pension if I emigrate?
If you have a Riester pension, you generally have to repay the allowances if you move your residence outside the EU/EEC countries. Within the EU, you can continue to receive the allowances under certain conditions. Wohn-Riester can even be used to finance EU properties if they are owner-occupied.
