Pension gap (Rentenlücke): how to work out yours in Germany

The pension gap is not a legal term but a planning number. It answers a simple question: how much money will you be short each month in retirement once the state pension and any other pensions are paid? It only means something if you work it out net and in today’s money. For people who came to Germany mid-career, the gap is often larger, because fewer years of German contributions mean fewer pension points. Status: October 2026.

The calculation

pension gap = net income wanted in retirement − net state pension − other pensions

1. What you need: monthly spending in today’s prices: housing, food, transport, insurance, travel. A percentage of your last salary is only a rough stand-in.
2. Gross state pension: pension points × current pension value (€42.52 since July 2026). Your Renteninformation from the Deutsche Rentenversicherung shows a projection.
3. Deductions: under health insurance for pensioners (KVdR) you pay half the contribution, 7.3 % plus half the additional contribution (§ 249a SGB V), and the long-term care contribution of 3.6 % (4.2 % without children) on your own (§ 59 SGB XI).
4. Tax: only the taxable share is taxed. It depends on the year the pension starts: 84 % for 2026, half a point more each year, 100 % from 2058 (§ 22 EStG).
5. Other pensions: company pension, Riester, Rürup, private annuities, also net. Pensions from other countries you worked in count here too.

Example

Sven wants €2,500 net a month in retirement, in today’s prices. His Renteninformation shows €1,900 gross.

• Health insurance: €1,900 × (7.3 % + 1.45 %) = €166.25, assuming a 2.9 % additional contribution
• Long-term care: €1,900 × 3.6 % = €68.40
• Pension before tax: €1,665.35

Before income tax the gap is €2,500 − €1,665 = €835 a month, or €10,020 a year. Tax on the pension makes it larger.

How much capital closes it? At 2 % above inflation and 25 years of retirement, Sven needs about €10,020 × 19.91 = roughly €199,500 at the start, if the money may run out at the end. Under the 4% rule, which aims to stretch capital over 30 years, it would be €10,020 × 25 = €250,500.

How big is a typical gap?

That depends on the person. One reference point is the pension level (Rentenniveau): in 2026 the pension after 45 years at average pay equals 48.0 % of the average wage, both after social contributions and before tax. 45 points pay €1,913.40 gross. The 2025 pension insurance report expects a fall to 46.3 % in 2039, after the 48 % floor ends in 2031.

Common mistakes

• Using the gross pension. The Renteninformation shows gross figures; health and care insurance take more than 12 %.
• Forgetting inflation. A gap of €835 today is €1,512 in nominal terms in 30 years at 2 % inflation. Work either fully in today’s prices or fully in nominal terms.
• Overlooking the years before the pension. If you stop at 60, you need your full income from savings until the pension starts, not just the gap.
• Assuming the projection. It assumes you keep contributing. Part-time work, self-employment, leaving Germany or stopping early lower it.

In your plan

The German pension gap calculator works out net pension, gap and the monthly saving needed, in today’s money. How much capital an earlier exit needs is shown by the FIRE calculator, and the real return entry explains what return after inflation is a reasonable assumption.