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Pension Abroad: Your Guide to a Worry-Free Retirement
Retirement abroad is enticing with its mild climate and lower living costs. But what should be considered when emigrating during retirement? From pension payments to health insurance and tax aspects – we have the answers. For personal advice and support in planning your stay abroad, get in touch with us here.
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Retirement abroad is enticing with its mild climate and lower living costs. But what should be considered when emigrating during retirement? From pension payments to health insurance and tax aspects – we have the answers. For personal advice and support in planning your stay abroad, get in touch with us here.
Retirement abroad is enticing with its mild climate and lower living costs. But what should be considered when emigrating during retirement? From pension payments to health insurance and tax aspects – we have the answers. For personal advice and support in planning your stay abroad, get in touch with us here.
Retirement abroad is enticing with its mild climate and lower living costs. But what should be considered when emigrating during retirement? From pension payments to health insurance and tax aspects – we have the answers. For personal advice and support in planning your stay abroad, get in touch with us here.
Dreaming of retirement under the palms? Discover all the essential information on pensions, taxes, health insurance, and the most popular expatriation countries. Get informed now!
Are you dreaming of retiring under palm trees or in the mountains? The idea of moving abroad during retirement is tempting for many Germans. But before you pack your bags, there are a few things to consider. Here at GoMovin, we assist you in making your move abroad seamless. With our expertise in Expat Services and Relocation, we support you every step of the way—from planning to settling into your new home. Find out how we can help you.
Why do retirees move abroad?
Many retirees choose to move abroad for a variety of reasons. Often it is the lower cost of living that makes emigration attractive. In some countries, you can enjoy a significantly higher standard of living with your pension. The better climate also plays a role, especially for those with health issues. Ultimately, many retirees are looking for a higher quality of life abroad, whether that means a more relaxed lifestyle or a more appealing environment. Tax advantages can also be a factor. The pension insurance even encourages moving abroad.
What should you consider when planning?
Careful planning is essential for a successful retirement abroad. Important aspects include financial stability, healthcare, language and cultural integration, and residency regulations. Ensure your pension is sufficient to maintain your standard of living in your chosen destination. Research medical care options and consider taking out private health insurance. Learn the language and culture of the country to integrate better. And take care of all necessary formalities to live legally in the country. GoMovin supports you during these crucial steps. We assist with administrative processes and ensure you have all the necessary documents.
Ensure full pension: Pay attention to destination country and agreements
An important factor when planning your retirement abroad is whether you will receive your pension in full or face deductions. This mostly depends on the destination country. Within the EU and EFTA states, full pension payments are usually guaranteed. Outside these states, deductions might be possible, depending on social security agreements. It's advisable to get informed beforehand to avoid unpleasant surprises. The full amount of your pension benefits depends on the duration of your stay.
Full or reduced pension?
Whether you are entitled to the full amount of your pension largely depends on which country you emigrate to. In EU and EFTA states, full pension payments are generally guaranteed. This is because these states are closely interconnected through agreements and laws, which simplifies pension transfers. However, if you emigrate to a non-EU country, deductions may be possible. This is particularly the case if there is no social security agreement between Germany and the destination country. Such agreements govern how pension entitlements are handled between the countries. It is therefore advisable to thoroughly research which regulations apply to your destination country before emigrating. GoMovin supports you in understanding these complex issues and making the right decisions. We provide comprehensive advice on your insurance options.
Special regulations
In addition to general regulations, there are also some special regulations that can affect your pension entitlement. These include, for example, the impact of expelled status, resettler status, and former GDR agreements. If you have such a status or fall under a former GDR agreement, it may affect your pension payment. It is important to consider these aspects when planning your retirement abroad and to seek advice if necessary. The German pension insurance also provides information about these special regulations.
The life certificate
An important aspect that you need to consider as a pensioner abroad is the annual life certificate. This certificate serves as proof to the German pension insurance that you are still alive and therefore still entitled to your pension. You must complete the life certificate every year and have it confirmed by a competent authority (e.g., a German embassy or a notary). You then send the certificate to the German pension insurance. The pension service of Deutsche Post AG is testing the digital life certificate (DLN) in selected countries using the PostIdent app.
Disability pension
If you receive a disability pension, there are some special provisions to consider. The disability pension is paid if you can no longer work or can only work to a limited extent due to illness or disability. If you move abroad with a disability pension, it may affect your pension entitlement. It's important to find out in advance which regulations apply in your case. The full pension payments depend on the agreements.
Top countries for retirees: Spain and Thailand in focus
Choosing the right destination country is crucial for a successful retirement abroad. There are many popular destinations for German retirees, each with its own advantages and disadvantages. Top countries in Europe include Austria, Switzerland, and Spain. Outside Europe, Thailand, Turkey, the Philippines, and Russia are gaining popularity. In contrast, the USA and Canada are less favoured, mainly due to high living costs. The best countries for emigration are diverse.
Top Destinations in Europe
Austria and Switzerland are especially popular because of their proximity to Germany. Many retirees appreciate the familiar culture and excellent infrastructure. Medical care in both countries is also of a high standard. Spain, on the other hand, attracts with its mild climate, beautiful beaches, and relaxed lifestyle. However, living costs in Spain have increased in recent years. German retirees in France can remain in the German pension insurance system but must pay high additional charges. Spain will tax German pensions up to 5% starting in 2025.
Emerging Countries
Thailand, Turkey, the Philippines, and Russia are attractive primarily due to their lower living costs. Here, you can often enjoy a significantly higher standard of living with your pension than in Germany. However, be aware that cultural differences can be significant, and the medical care may not meet German standards. Thailand offers a retirement visa for individuals over 50 with a monthly net pension of 1,700 EUR.
Less Popular Countries
The USA and Canada were once popular emigration destinations for German retirees. Nowadays, however, they have become less appealing due to high living costs. High rental prices and expensive healthcare make retirement in these countries unaffordable for many retirees. The declining popularity of the USA and Canada is attributed to the high living expenses.
Optimise tax burden: Utilise double taxation agreements
An important aspect to consider when planning your retirement abroad is the taxation of your pension. Generally, your pension will also be taxed abroad. However, there are double taxation agreements (DTAs) between Germany and many other countries that aim to prevent you from being taxed twice on your pension. It is advisable to thoroughly research how taxation is regulated in your destination country. The Neubrandenburg Tax Office (RiA) is responsible for the taxation of pensions abroad.
Taxation of Your Pension Abroad
The taxation of your pension abroad depends on various factors. On the one hand, your place of residence plays a role. If you permanently relocate your residence abroad, you are only subject to limited tax liability in Germany. This means you will only pay taxes in Germany on income originating from Germany. On the other hand, the double taxation agreements (DTAs) between Germany and your destination country are crucial. These agreements determine which country has the right to tax your pension. The Neubrandenburg Tax Authority is responsible for foreign pensions.
Neubrandenburg Tax Office (RiA)
The Neubrandenburg Tax Office (RiA) is responsible in Germany for the taxation of pensions abroad. If you relocate your residence abroad, you must inform the Neubrandenburg Tax Office. The tax office will then inform you of the documents you need to submit and how your pension taxation is regulated. It is advisable to contact the tax office early to clarify any questions. The advice from the Neubrandenburg Tax Office (RiA) is recommended.
Unlimited Tax Liability
Under certain conditions, you can also remain subject to unlimited tax liability in Germany as a retiree abroad. This is the case, for example, if you derive more than 90 percent of your income from Germany. If you are subject to unlimited tax liability, you are entitled to the basic allowance and may also be able to use income splitting for married couples. This can significantly reduce your tax burden. It is advisable to consult a tax advisor to assess whether unlimited tax liability is applicable for you. The application for unlimited tax liability can reduce the tax burden.
Secure health protection: Choose health insurance abroad
An important aspect to consider when planning your retirement abroad is health insurance. Basically, you have two options: you can either remain insured with the German statutory health insurance (GKV) or opt for private health insurance. Which option is right for you depends on various factors, including your destination country and your health condition. Health insurance is a key point for retirees looking to emigrate.
Statutory Health Insurance (GKV)
If you are insured with the German statutory health insurance (GKV), you have the possibility, under certain conditions, to maintain your insurance cover abroad. Within the EU, EEA, and Switzerland, this is generally possible without issues. You just need the S1 form, which you can request from your health insurance provider. With the S1 form, you are entitled to the same medical services as insured persons in the respective country. Outside the EU, EEA, and Switzerland, you will need alternative insurance. Health insurance within the EU/EEA and Switzerland requires the S1 form.
Private Health Insurance
If you are not covered by the German statutory health insurance (GKV) or if you live outside the EU, EEA, and Switzerland, you will need private health insurance. There are many different private health insurance options offering various services. It's important to gather detailed information in advance and choose the insurance that best suits your needs. Make sure the insurance is valid abroad and covers medical treatment costs. A comprehensive solution like Globality is crucial.
Supplementary Long-Term Care Insurance
In case you become in need of care in old age, it is advisable to take out supplementary long-term care insurance. The benefits of statutory long-term care insurance often do not suffice to cover the costs of comprehensive care. With supplementary long-term care insurance, you can fill the financial gap and ensure that you receive the best possible care if needed. It is advisable to learn about the various offers early on and take out appropriate insurance. Private supplementary long-term care insurance is advisable for long-term care.
Financial Flexibility: ETF Investments in Retirement
In addition to the pension, there are other aspects of financial planning and retirement provision that you should consider when emigrating. These include the Riester pension, Wohn-Riester, and ETF investments. It is important to thoroughly research in advance what impact emigration will have on your retirement provision and what options you have to optimise your financial situation. Investing in ETFs is recommended for financial flexibility.
Riester Pension
If you have taken out a Riester pension, you must be aware that you may have to repay the allowances and tax benefits if you move your residence outside the EU or EEA. However, there are exceptions to this rule. For example, you can keep the Riester pension if you live in a country with which Germany has a social security agreement. It is advisable to thoroughly research in advance which regulations apply in your case. The Riester pension may need to be repaid if you move outside the EU.
Wohn-Riester
If you have taken out a Wohn-Riester, you can use it under certain conditions to finance a property abroad within the EU. This is possible, for instance, if you live in the property yourself. However, it is important to thoroughly research in advance what conditions must be met and what evidence you need to provide. Wohn-Riester can be used to finance EU properties if they are self-occupied.
ETF Investments
A good way to increase your financial flexibility in retirement is through ETF investments. ETFs (Exchange Traded Funds) are exchange-traded index funds that allow for a broad diversification of capital. With ETFs, you can invest easily and cost-effectively in various markets and asset classes. This can help you preserve and grow your wealth. Consulting a financial advisor about which ETFs are suitable for you is advisable. Investing in ETFs is recommended for financial flexibility.
Report promptly: Know deadlines and contact persons
In addition to the financial aspects, there are also some legal and organisational preparations you should make before emigrating. These include registration obligations, documents and verifications, as well as the digital proof of life. It's important to thoroughly research in advance which formalities you need to complete and which deadlines must be met. The permanent relocation requires notifying the insurer two months in advance.
Registration Obligations
If you move your residence abroad, you must notify various authorities. This includes the German Pension Insurance. You need to inform the pension insurance about your move and provide your new address. It's advisable to do this early to avoid delays in pension payments. The notification of relocation to the German Pension Insurance should be done at least three months in advance.
Documents and Verifications
For emigration, you will need various documents and verifications. These include, among others, your identification card, your health insurance card, and proof of self-employment. It is advisable to take copies of all important documents and have them translated if necessary. Proof of your financial situation can also be helpful. In most countries, a valid identity card or passport, proof of sufficient health insurance, as well as a proof of adequate health insurance are sufficient.
Digital Proof of Life (DLN)
The German Pension Insurance now offers a Digital Proof of Life (DLN). With the DLN, you can provide your life certificate online. This is particularly convenient if you live abroad and do not have the opportunity to visit a German embassy or consulate. The DLN is currently being tested in a pilot project. The Pension Service of Deutsche Post AG is testing the digital proof of life (DLN) in selected countries via the PostIdent App.
Step by Step: Use the Checklist for Emigration
To ensure that you don't forget anything when emigrating, it is helpful to create a checklist. The checklist should include all the important points you need to address before and after emigrating. This can help you stay organised and avoid stress. Here is a checklist for emigrating as a retiree:
Before emigration
Research: Thoroughly research your destination country.
Trial visit: Visit your destination country to get a feel for it.
Financial planning: Plan your finances and clarify all tax-related issues.
Insurance: Take out the necessary insurance policies.
Official procedures: Complete all necessary official procedures.
After emigration
Registration: Register at your new place of residence.
Opening a bank account: Open a bank account in your destination country.
Language course: Attend a language course to learn the country's language.
Emigrate with peace of mind: GoMovin supports your retirement
Emigrating in retirement is a big step that requires thorough preparation. With the right planning and organisation, however, you can fully enjoy your retirement abroad. At GoMovin, we're happy to assist you with this process. With our expertise in expat services and relocation, we are here to help you with any questions or issues you may encounter. We'll assist you in making your move smooth and help you settle quickly into your new home.
Summary of Key Points
The key points to consider when emigrating in retirement are:
Financial Planning: Ensure your pension is sufficient and address all tax-related questions.
Healthcare: Take out the necessary insurance and inform yourself about the medical care in your destination country.
Legal Preparations: Complete all necessary administrative steps and clarify any legal questions.
Cultural Integration: Get to know the language and culture of your destination country.
Outlook for the Future
The trend of retiring abroad is expected to continue in the future. More and more people are seeking new challenges and a higher quality of life abroad as they age. With increasing globalisation and improved communication options, living abroad and staying in touch with family and friends is becoming easier. At GoMovin, we are well-prepared to support you in this endeavour. Contact us today to find out more about our services.
Are you dreaming of a carefree retirement abroad? At GoMovin, we understand that planning and executing such a move raises many questions. From arranging the move and resolving legal issues to integrating into a new cultural environment—we are here to provide advice and assistance.
With GoMovin by your side, you benefit from our many years of experience and our global network. We offer bespoke advice tailored to your personal needs. This ensures your move runs smoothly and you can enjoy your new chapter of life without stress.
Don't wait any longer to make your dream of retiring abroad a reality. Contact us today for a no-obligation consultation. Together, we'll find the best solution for your retirement emigration.
Further useful links
The Federal Ministry of Health provides information about legal regulations concerning health insurance abroad.
The Federal Ministry of Finance offers information on tax regulations for retirees abroad.
The European Commission provides information about freedom of movement for retirees within the EU.
Der Spiegel reports on retirees moving abroad and gives insights into popular destinations.
FAQ
Which countries are particularly popular with German retirees looking to emigrate?
Austria, Switzerland, and Spain are popular due to their proximity to Germany and good infrastructure. Outside of Europe, Thailand, Turkey, the Philippines, and Russia are gaining popularity, often due to lower living costs.
How does the duration of a stay abroad affect my pension?
A stay of less than six months per year retains your main residence in Germany and secures your full pension entitlements. A stay of more than six months is considered permanent, which can have tax implications.
Do I need to inform my pension provider about my move?
Yes, you need to inform the German Pension Insurance at least three months in advance of your move. Provide your IBAN and BIC to ensure smooth pension payments.
What is the annual life certificate and why is it important?
The life certificate is proof that you are still alive. It must be confirmed annually by a competent authority (e.g., embassy, notary) and sent to the German Pension Insurance to maintain pension payments.
How does moving abroad affect my health insurance?
Within the EU, EEA, and Switzerland, you can generally maintain your coverage with the S1 form. Outside of these regions, you will need private health insurance.
What happens to my Riester pension if I emigrate outside the EU?
If you move your residence outside the EU or the EEA, you may need to repay the allowances and tax benefits of your Riester pension. However, there are exceptions if Germany has a social security agreement with your destination country.
What tax aspects must I consider when emigrating as a pensioner?
The taxation of your pension depends on your residence and the double taxation agreements (DTA) between Germany and your destination country. The Neubrandenburg Tax Office (RiA) is responsible for taxing pensions abroad.
Can I use my residential Riester to finance a property abroad?
Yes, under certain conditions, you can use your residential Riester to finance a self-occupied property in the EU abroad.
