Retirement Provisions

In Germany, retirement and pensions are liable to tax. Pensions (for officials/state workers) are taxed in full, while statutory/private retirement benefits (for everyone) are only partially taxed - the portion that is taxed is based on various factors such as when the benefits began.

What’s taxed

  • Statutory retirement benefits: varying on when the benefits begin
  • Private retirement benefits: e.g. long-term disability insurance
  • Company pensions: A company pension is when your employer offers retirement benefits such as direct insurance, pension funds, pension schemes, relief funds, etc.
  • Pensions for state employees: taxed in full
  • Riester pensions
  • Rürup pensions