Guide · 2026
When can you retire, what is left after tax and health insurance contributions, and what happens if you need long-term care? This guide sets out the rules and amounts for 2026, explains what to watch out for with pension periods abroad and shows which applications and documents to prepare in good time.
Which old-age pension you can get depends on your year of birth and years of insurance. Your annual pension statement (Renteninformation) shows where you stand; from 55, a pension statement (Rentenauskunft) listing all your recorded periods follows every three years.
The standard retirement age (Regelaltersgrenze) is rising step by step to 67: people born in 1960 reach it at 66 years and 4 months, and from the 1964 cohort onwards it is 67. You need at least five years of insurance – child-raising periods and voluntary contributions also count. If you start your pension only after the standard retirement age, it increases by 0.5% for each month.
With 35 years of insurance you can retire from 63 – with a permanent deduction (Abschlag) of 0.3% for each month before your standard retirement age. For people born in 1964 or later, that is up to 14.4%. Work out what the deduction means over your whole time in retirement.
With 45 years of insurance you can retire earlier without a deduction – at 65 if you were born in 1964 or later, and not earlier even with a deduction. Mainly compulsory contribution periods count, for example from employment, child-raising or caring; voluntary contributions only count if you have at least 18 years of compulsory contributions.
Since 2023 you can earn as much as you like alongside any old-age pension, including an early one. Since 1 January 2026 the Aktivrente applies: employees who have reached the standard retirement age can earn up to €2,000 a month tax-free (§ 3 no. 21 EStG), even without drawing a pension. Social security contributions are still due; the self-employed, civil servants and mini-jobs are excluded.
Periods from the EU, the EEA, Switzerland and agreement countries such as Turkey, the USA, Canada or India are added together to meet the minimum insurance period; each country pays its own pension. Periods from countries without an agreement – such as Iran or Afghanistan – do not count. If you came to Germany later in life, check whether you will reach the five years; voluntary contributions can help.
Health and care insurance contributions are deducted from your gross pension, and part of it is taxable.
Long-term care insurance pays fixed amounts according to your care level (Pflegegrad), usually only part of the costs. A June 2026 draft Care Reorganisation Act (Pflegeneuordnungsgesetz) plans changes from 2027, for example to care level 1 and the care allowance; it has not yet been adopted and is not law (as of September 2026).
You apply to the long-term care fund (Pflegekasse) at your health insurance fund; the privately insured apply to their insurer. The Medical Service (Medizinischer Dienst) – or Medicproof for the privately insured – assesses six areas of life to see how independent you are and so determines care level 1 to 5. If the fund does not decide within 25 working days, it usually pays €70 for each week started. Benefits are paid from the application date.
Care allowance (Pflegegeld) if relatives or friends provide care: €347 (care level 2), €599 (3), €800 (4), €990 (5) a month. For a care service you receive in-kind benefits (Pflegesachleistungen) of up to €796, €1,497, €1,859 or €2,299; both can be combined. All care levels receive a relief amount (Entlastungsbetrag) of up to €131 a month, earmarked for approved support services. If family carers are unable to care, up to €3,539 a year is available from care level 2 for replacement and short-term care.
In a care home, the fund pays €805 to €2,096 a month for care (care levels 2 to 5) and reduces the remaining own contribution for care by 15% in the first, 30% in the second, 50% in the third and 75% from the fourth year. Residents pay accommodation, meals and investment costs themselves. According to vdek, the own contribution (Eigenanteil) in the first year averaged €3,364 a month on 1 July 2026 – from €2,891 to €3,761 depending on the federal state.
People in need of care and – with their consent – their relatives are entitled to free care counselling (§ 7a SGB XI). After an application for benefits, the care fund offers an appointment within two weeks on its own initiative. Local care support centres (Pflegestützpunkte) also help; the privately insured can contact compass private pflegeberatung.
Most people in need of care are looked after at home by relatives. Employees are entitled to time off.
Supplementary long-term care insurance can reduce the gap between costs and statutory benefits, for example to protect savings or a partner – it is not a must. Premiums usually depend on your age and health when you take out the policy and should remain affordable in retirement.
Pays an agreed amount per day or month if you need care, usually graded by care level. You can use the money freely – for a care service, relatives or a care home. Check from which care level and how much it pays, and whether premiums stop while you receive benefits.
Reimburses care costs that remain after the statutory insurance has paid – usually up to an agreed percentage or maximum. It normally requires invoices from a care service or care home, so care by relatives is often not covered or only to a limited extent.
Offered as a life insurance policy, it pays a monthly pension if you need care, depending on how much help you need. It is usually more expensive than daily care allowance insurance but, depending on the contract, may include a surrender value or a death benefit. Compare costs and flexibility before committing.
A daily or monthly care allowance policy receives a state subsidy of €5 a month if you pay at least €10 yourself. There is no health check; the insurer must accept everyone entitled to the subsidy. The tariff must pay in all care levels, at least €600 a month in care level 5. The waiting period can be up to five years.
Neither your spouse nor your children can automatically represent you in all matters. Without a power of attorney, the guardianship court may appoint a legal guardian (Betreuer).
Start early – especially if you have worked in several countries.
This content provides general orientation. Situations and benefits mentioned are examples; the specific need, policy terms and individual advice are decisive. It does not state a price, acceptance or cover decision.
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Yes, if you reach at least five years of insurance; periods from EU and agreement countries count, periods from countries such as Iran or Afghanistan do not. If your pension in old age is not enough, the Sozialamt provides basic income support in old age (Grundsicherung im Alter).
Possibly. For pensions starting in 2026, 84% of the statutory pension is taxable, but tax is only due above the basic tax-free allowance. You may still have to file a tax return.
According to the association of substitute health funds (vdek), residents paid an average of €3,364 a month themselves in their first year on 1 July 2026, after the care fund's benefits. The amount varies widely between federal states and homes.
Only if a child earns more than €100,000 gross a year. Below that, the Sozialamt claims nothing, not even from the child's assets; the income of a son- or daughter-in-law does not count.
Only in health matters and for no more than six months, if you cannot decide yourself. For banking and other contracts, your partner needs a lasting power of attorney.
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