In short
When you are old and no longer work, you get a pension – but often less money than before. That is why you put some of your own money aside today for later.
Last checked: 11 October 2026 · 5 min read · RenteKannMehr editorial team
Now in more detail
Retirement provision in Germany rests on several pillars: the state pension (gesetzliche Rente), the occupational pension through your employer and private saving. Private pension saving simply means: you put money aside yourself, so that in retirement you have more to live on than the state pension alone.
Why save privately at all?
The state pension replaces only part of your earlier income. How big the difference is for you depends on your working life – there is no general answer. The yearly pension statement (Renteninformation) from the German Pension Insurance (Deutsche Rentenversicherung) gives you a first idea. You can read more under Pension gap and how much you need.
The three levers
- Time: The earlier you start, the longer your returns can earn returns of their own (compound interest).
- Savings amount: Even small amounts add up over decades. What matters is that the amount fits your budget in the long run.
- Return after costs: What counts is what is left after all costs have been taken off. Higher possible returns always come with bigger ups and downs.
Subsidised and unsubsidised saving
The state supports certain certified pension contracts with allowances and tax advantages. Until now this was the Riester pension. From 2027 a new set of rules applies, with the retirement savings account (Altersvorsorgedepot) as the central product – the details are in the reform guide. Alongside this, you can save without a subsidy at any time, for example with an ordinary securities account. That is more flexible, but brings no allowances.
The subsidy comes at a price
Subsidised pension capital is tied to a purpose: it is meant for old age and cannot be taken out earlier without disadvantages. In addition, the later payouts are taxed. Both belong in your weighing-up.
Questions you can ask yourself beforehand
- Do I have a reserve for emergencies before I tie up money for the long term?
- How much can I spare each month in the long run?
- How will I cope if the value of my account falls sharply for a while?
- Do I need flexibility, or is the subsidy more important to me?
With the pension calculator you can try out how savings amount, term, return and costs work together.
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.