Poor retiree??

Not long ago, I received the letter from the German statutory pension insurance scheme. It was to be honest quite a shock. A wake up call.
I didn’t expect it to be that low. Hardly 400 Euro per month???  Previously, I was joking that maybe I’ll have to live in Thailand to survive, but for 400 euro per month even Thailand is an expensive country :/
However, I learned that for each kid one has the right to add up three years to the german pension insurance. The thing is though that you have to send in the form by yourself because it isn’t automatic. You can download it here.

Since I am a “complicated” case, that moved around it was too difficult for me to finish the form so I called the German statutory pension insurance scheme to ask for help. And you know what? I got an appointment where I went today and they were really nice and helped out a lot.

  • I learned that in Germany there is no garanti pension but the money you pay in the system is the money you get when you retire! That is fair on one hand but complicated in another.
  • You earn “Entgeldpunkte” (kind of points) per year. It is counted on an average salary that is 37.000 Euro (Brutto) per year. That corresponds to 1 point. If you earn 37 000 Euro you get 1 point. If you earn less you recalculate the amount and get 0,x points. If you earn more you get more points. Up to 78000 Euro per year brutto. After that you don’t pay , you cannot pay, more in the pension system.
  • When you retire the maximum pension you can get is 3000 Euro per month (Brutto). THAT is very little considering the fact that almost half the salary is gone in taxes and insurances. It is only around 1500-1600 Euro maximum pension. Sounds ok, BUT you only get it if you had over 78 000 Euro salary per year for years:/ All others can count on much smaller pension.
  • Per child one person can get 69 Euro more per month in pension.

After this devastating moment of truth my mind is now on how to improve my pension.

I asked the advisor what to do to improve my future pension and the guy told me there is a special service called PROSA that one can turn to and they can give you advice for your personal situation.  Next step will be to meet their advisor and it will be very interesting to see what they advice for my future.


And now when I look at the dividends that I get this year and the grandios pension that I am supposed to get, I actually already until now (this year) got dividend corresponding to almost one month of pension as a poor retiree.
Now my main goal is to manage to get my “pension dividends” 12 times per year. That would mean 400×12 Euro in dividends: 4800 Euro per year I need in dividends….to double my pension…in netto. And a first subgoal is to increase the dividend to double…Well at least a working “SMART” goal…


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