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For families and employees

Pension saving for employees

In short

If you work as an employee, you can collect money for old age in three ways: through the state pension, through your company and by yourself. Here you can see how these fit together.

Last checked: 11 October 2026 · 4 min read · RenteKannMehr editorial team

Now in more detail

As an employee, you are as a rule compulsorily insured in the statutory pension insurance scheme. This puts you among those who can use state-subsidised private pension saving.

Three building blocks

  • State pension: the foundation. Your yearly pension statement (Renteninformation) shows which entitlements you have built up so far.
  • Occupational pension: You have a right to salary conversion (Entgeltumwandlung). Whether and how much the employer adds is set out in your employment contract or collective agreement.
  • Private saving: subsidised through certified contracts, or unsubsidised, for example with an ETF savings plan.

What changes for employees from 2027

The allowance no longer depends on your income, but only on your contribution. This makes the subsidy easier to plan: anyone who pays in €360 a year receives a basic allowance (Grundzulage) of €180; the highest basic allowance of €540 is paid for an own contribution of €1,800.

Anyone who is starting their career and is not yet 25 years old at the start of the contribution year receives a one-off €200 on top.

Do not forget tax

Contributions of up to €1,800 a year plus the allowance can be taken into account as special expenses (Sonderausgaben). With higher incomes, the tax advantage can exceed the allowance; the tax office checks this automatically. In return, the later payouts are taxable.

A sensible order

  • Get an overview: gather your pension statement and existing contracts.
  • Check whether your employer contributes to a company pension.
  • Decide how much you can save each month in the long run.
  • Compare the costs, risks and tie-in of different routes.

In the calculator you can try out different savings amounts and terms.

More questions?

If you have more questions, talk to a personal adviser near you. They can look at your situation in detail. Asking is free and without obligation.

Find an adviser near you

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