Pension Insurance

The pension insurance ("Rentenversicherung") is the most important pillar securing old age in Germany. Employers, along with apprentices and certain groups of self-employed people, are obliged to have public pension insurance. The main functions of the pension insurers are:

• payment of pensions to the insured or their surviving dependants (spouse and orphans)
• provision of medical and occupational rehabilitation measures.

Certain conditions have to be fulfilled before pensions can be drawn. The men and women insured must have reached a minimum age ("Altersgrenze"), they must have paid contributions for a certain amount of time ("Wartezeit") and they have to apply for a pension. Pensions are generally paid at the age of 65, but it is also possible to receive an early pension or to work longer and receive the pension at a later age. The "Bundesministerium für Gesundheit und Soziale Sicherung" (Federal Ministry for Health and Social Security) has information on pensions, partial pensions, pensions due to reduced earning capacity and pensions due to death (for spouses and orphans).

You can find more information at www.renteninfo-online.de, www.bfa.de, www.lva.de.

In order to secure a certain standard of living in retirement, it is advisable to supplement the state pension – which is based on the principle of solidarity – with a private pension. Consumer advice agencies give information on state schemes to fund private and company pension schemes.