Retirement planning for academics is less about finding one right product than about getting the order right. Once you start earning after your studies, doctorate or traineeship, you usually have several options: the statutory pension (gesetzliche Rente), an employer-funded occupational pension (betriebliche Altersversorgung, bAV), a private pension or an investment account. This guide shows you what to check first and why.
Short answer: Start with protection against loss of earning capacity (Berufsunfähigkeit) and an emergency fund. After that, check whether your employer adds a contribution to a salary sacrifice scheme. It is usually 15 percent of the converted salary, capped at the social security contributions your employer saves. The successor to the Riester pension is due to apply from January 2027; until then the current subsidy rules remain in force. Last updated: October 2026.
The most important points
- The statutory pension is the foundation. The current pension value (West) has been 42.52 euros per point since 1 July 2026.
- A salary sacrifice scheme usually brings an employer contribution of 15 percent, as far as the employer saves social security contributions.
- The Riester pension is replaced from 2027 by the new Altersvorsorge reform law. Existing Riester contracts continue.
- Before you build assets, secure your income against disability and build an emergency fund.
- The pension gap shows how much you need on top. It is more precise than any rule of thumb.
Which protection comes first?
Before you invest for retirement, you need a buffer for short-term costs and protection for your income. Disability insurance (Berufsunfähigkeitsversicherung, BU) pays if you cannot practise your profession for health reasons. It involves a health check and contract details that differ between providers. Our guide to disability insurance for students (in German) explains the basics.
If you are unsure which cover fits your situation, a personal consultation can help. You can find out more at How we work (in German).
How does the occupational pension work?
The occupational pension (betriebliche Altersversorgung, bAV) is the route in which your employer also contributes. You convert part of your gross salary into a pension entitlement, for example through a direct insurance policy, a pension fund (Pensionskasse) or a pension fund vehicle (Pensionsfonds). The advantage has two parts: the conversion saves taxes and social security contributions, and your employer usually adds a contribution.
The statutory employer contribution is 15 percent of the converted salary. It is limited to the social security contributions that your employer actually saves by the conversion. Your employer calculates the exact amount, so ask the HR department for the calculation.
| Building block | What you get | What to check |
|---|---|---|
| Employer contribution | Usually 15 percent of the converted salary, capped at the saved social security contributions | Check whether it is in your contract and whether your employer pays more |
| Direct insurance or pension fund | Entitlement with guarantees that depend on the product | Costs, guarantees and the form of payout in the contract |
| Payout in retirement | Pension or lump sum | The payout is taxable, and contributions to health and long-term care insurance may apply |
When you change employers, check what happens to your existing entitlement. In most cases it remains in place, and the rules are set out in the Company Pensions Act (Betriebsrentengesetz). Ask for written confirmation of how the old contract continues and compare the costs of the new offer with the old one.
What changes with the Riester successor from 2027?
The Riester pension (Riester-Rente) is a subsidised private pension with state allowances. The Bundesrat approved the Altersvorsorge reform law on 8 May 2026. It replaces the Riester pension for new contracts and is due to apply from January 2027. The plan is to raise the basic allowance to a maximum of 540 euros per year. That is not yet applicable law: until the reform starts, the Riester basic allowance remains 175 euros per year (section 84 of the Income Tax Act, EStG). The 540 euros apply only to the new subsidy scheme and require a personal contribution of 1,800 euros a year.
New products include pension depots (Altersvorsorgedepots) without a guarantee and without a lifelong pension, as well as products with an 80 or 100 percent contribution guarantee. A standard product should have effective costs of at most 1.0 percent. Existing Riester contracts continue and are protected by transitional rules.
| Option | Often suitable if | Watch out for |
|---|---|---|
| Riester contract (existing) | You already have one | It continues; switching to the new subsidy is possible by declaration |
| Pension depot (from 2027) | You want market-linked investing and accept fluctuations | No guarantee and no lifelong pension envisaged |
| Basis pension (Basisrente) | You want a lifelong pension and tax deductibility | Contributions are not very flexible, and the payout is taxed later |
| ETF savings plan in a depot | You want flexibility without subsidy rules | No guarantee, price swings and withholding tax on gains |
How much pension is missing?
Before you compare products, find out roughly what your statutory pension will be. The monthly pension is the number of pension points multiplied by the current pension value. The pension value (West) rose by 4.24 percent on 1 July 2026, from 40.79 euros to 42.52 euros. Here is a quick estimate:
- Pension points: 40 (assumption: 40 years at average earnings).
- Gross pension: 40 times 42.52 euros equals 1,700.80 euros per month (status July 2026, before tax).
- Target net income: 2,500 euros per month (assumption).
- Rough gap: 2,500 minus 1,700.80 equals 799.20 euros per month. This compares net with gross and is only a first orientation.
Your pension statement shows the exact figure, so treat this calculation as a starting point. Repeat it once a year, because the pension value is adjusted every year.
What suits a depot?
An ETF savings plan in a depot can make sense if you want flexibility and can handle price swings. A savings plan spreads your entry over time, but it does not replace protection. A depot receives no state allowance, and gains are subject to withholding tax. For academics who start working later, it is worth starting early with a small amount and reviewing the plan regularly.
Frequently asked questions
Is it worth saving for retirement in my first job?
Yes, once your emergency fund and income protection are in place. An early start gives your money more time to grow. How much you set aside depends on your budget, not on a fixed sum.
Is an occupational pension enough on its own?
Usually not. It is one building block. What matters is the size of your pension gap and which other options you combine.
What happens to my old Riester contract?
According to the German Pension Insurance, existing contracts continue. Which rules apply to your contract is set out in your documents and needs to be clarified with your provider.
Do I have to decide now?
No, but you should not delay the start unnecessarily. A decision that fits your budget is better than no decision at all. Before you start working, an overview of your running costs helps.
What to do next
- Request your pension statement from the German Pension Insurance and check your contribution record for gaps.
- Ask your employer about the occupational pension and the employer contribution.
- Clarify disability cover and an emergency fund before you invest.
- Recalculate your pension gap with the figures in this guide.
- Compare the options by costs, guarantees and flexibility before you sign a contract.
Related guides
- Budget Planning for Students: A Monthly Plan in 3 Steps
- Disability insurance for students: costs and start (in German)
- Retirement planning for students: start early with small amounts (in German)
Sources: German Pension Insurance, pension adjustment 2026 (press release of 5 March 2026, in German); German Pension Insurance, reform of private retirement provision (press release of 8 May 2026, in German); German Pension Insurance, glossary entry on employer contributions to salary sacrifice (accessed October 2026, in German).
Last updated: October 2026. This guide is general information, not individual advice.
