Most people know their bank balance to the cent. Almost nobody can say how much money will actually land in their account every month once they retire. Yet that is the single most important number in personal financial planning.
The number nobody likes to say out loud
The average old-age pension in Germany is around 1,180 euros a month. Men receive roughly 1,374 euros, women roughly 1,000 euros.
The poverty risk threshold for a single-person household currently sits at about 1,314 to 1,380 euros net.
What the pension level really means
The pension level before tax is 48 percent. This figure is almost always misread. It does not mean you will receive 48 percent of your final salary.
It means that someone who earned exactly the average for 45 years receives 48 percent of the average income applying at that time.
Two conditions, then, that rarely both apply. Anyone who studied, worked abroad, raised children or cared for relatives seldom reaches 45 full years. And anyone earning above average receives more pension in absolute terms but proportionally less measured against the income they are used to.
The 2026 figures
Pensions rose by 4.24 percent on 1 July 2026. The current pension value has since been 42.52 euros per earnings point, up from 40.79 euros.
That puts the standard pension, meaning 45 earnings points, at 1,913.40 euros gross a month.
Two things matter about that number. It is gross, so health and long-term care contributions still come off, and depending on when you retire part of it is taxable. And it is a model case, not an average. Most people never reach 45 earnings points, which is why the actual average pension is so much lower.
How to work out your own gap
You need two numbers and ten minutes.
Step 1: your expected pension. From the age of 27, the German pension insurance sends you an annual statement, provided you have five contribution years. Take the projection, but read the small print: it assumes you will keep earning exactly as you do now.
Step 2: what you will need. No rule of thumb like “80 percent of your final net”. Take your actual expenditure and remove what disappears: savings rates, commuting, perhaps loan payments. Add what appears: health, time, travel.
Step 3: the difference. Need minus expected net pension.
Step 4: inflation. Today’s gap is not tomorrow’s gap. At two percent inflation over 25 years you need roughly 1.64 times as much money for the same basket of goods.
A worked example
Say your pension statement shows 1,400 euros gross. After health and care contributions, around 1,250 euros remain.
Your current spending is 2,200 euros. In retirement, savings and commuting fall away, so the need is 1,900 euros.
Gap today: 650 euros a month.
There are still 25 years to retirement. With inflation that corresponds to roughly 1,070 euros in the money of the day.
That is not a number you close with a 25-euro savings plan. But it is also not a number to fear if you know about it 25 years in advance.
Your pension statement is sitting in a folder somewhere. Bring it along and we will work out your gap together, not from an example but from your figures.
Book a consultation →Why most people put this off
Because the answer is uncomfortable. A gap of several hundred euros feels crushing the first time you see it in black and white.
But that is exactly where the value lies. An unknown gap cannot be closed. A known one can, and the earlier you know it, the smaller the monthly effort.
Start at 30 and compound interest has 37 years to work. Start at 50 and it has 17. The difference in the monthly amount required is dramatic, and nothing later can make it up.
- I know how many earnings points I have collected so far
- I have read this year's pension statement, not just filed it
- I know my monthly expenditure, calculated rather than guessed
- I know how much of my pension will be taxable later
- I have checked periods abroad, in education or on parental leave
Fewer than three ticks means planning in the dark. That is not a disgrace, it is the norm.
What comes next
Only once the number is on the table does the question of a product make sense. Before that, any conversation about Riester, Rürup, occupational or private pensions is a conversation about tools without knowing what is being built.
That is exactly the order I work in: your number first, then the strategy, then the implementation.
Common questions
Does an inheritance or a property count? Carefully. A home you live in reduces your need because rent falls away, but it generates no income. And an inheritance is a bonus, not a basis for planning.
What if I worked abroad for years? Then it depends on the relevant social security agreement. Periods abroad can count towards the qualifying period, but each country pays its own pension separately. One of the most common reasons pension statements get misread.
Is the pension statement reliable? As a snapshot, yes. But it simply projects your earnings so far. Anyone facing a pay rise, self-employment or a period of part-time work should not treat it as fixed.
How much do I need to save to close a 650-euro gap? That depends on term, return and tax treatment, which is exactly why there is no serious blanket answer. Over 25 years, though, the monthly figure is considerably smaller than most people fear.
