Pension insurance Germany: Crediting of claims from abroad

If people have worked in several countries, it is quite possible to receive pension benefits from each of those countries. The eligibility requirements are based on the respective national laws. The Ecovis experts explain exactly what applies.

Working anywhere in the world has become a given these days. This impacts future pensions, as a few years are often enough to qualify for a pension from a country of employment.

Pension claims from the German pension insurance

Under German law, there are different types of pensions. Each of these has its own applicable retirement age and minimum insurance period. The retirement age for the standard old-age pension is gradually being raised to 67 years, depending on the year of birth. The minimum insurance period for a basic claim is only 5 years. Those who have worked for the 35 or 45-year minimum insurance period may have the option of early retirement, though this often involves reductions.

Crediting periods abroad

Shorter employment periods abroad may not meet the minimum insurance period of the respective country. However, through European regulations and numerous social security agreements with countries outside Europe, insurance periods can be combined to meet the minimum requirements for pension eligibility. Sometimes, periods of child-rearing can also be taken into account. Pensions are not added together into a total sum; instead, each country pays its own pension.

Anyone who has worked abroad should inform themselves early on about the rules in the individual countries and seek pension advice.

Andreas Islinger, Tax Advisor and Pension Advisor, ECOVIS Germany, Munich, Germany

Example:

A Spanish employee has worked in Germany for three years and has spent the rest of their working life employed in Spain. This does not meet the minimum required insurance period for a pension from Germany. However, the periods worked in Spain are credited towards fulfilling the minimum insurance period in Germany. As a result, the employee is entitled to a German pension based on the three years worked there. Depending on the duration of insurance in Spain, there may also be a further pension entitlement in Spain.

For further information please contact:

Andreas Islinger, Tax Advisor and Pension Advisor, ECOVIS Germany, Munich, Germany
Email: andreas.islinger@ecovis.com