What is a pension analysis

Retirement benefits


Measures to provide and secure the necessary funds (capital or pensions) for retirement after reaching the age limit or in the event of disability and for the surviving dependents in the event of death. The name would be more precise Old-age, disability and survivors' benefits.

System in the Federal Republic of Germany

Characterized by the "three-pillar concept", a multi-level pension system that is primarily supported by a collective basic pension, company pension scheme and supplementary individual provision.

1. Collective basic pension: Supply by law. In addition to the civil service pension (without contributions from the candidates) and several supplementary pension funds, in particular various compulsory insurance institutions (generally with contributions from the candidates).

a) The most important is the statutory pension insurance (Pension insurance). An estimated 90 percent of the elderly, disabled and orphans earn their living to a large extent from their services and around 80 percent of the working population are compulsorily insured in the statutory pension insurance. The self-employed are only covered to a small extent by the compulsory insurance in the statutory pension insurance, e.g. by the retirement plan of the craftsman. In addition, there are special compulsory insurance institutions for self-employed persons of several occupational groups, such as old-age benefits for farmers and the various providers of old-age insurance for the liberal professions (e.g. lawyers, architects, journalists, doctors, etc.).

b) That Pension offer is in accordance with the collective mandate uniform. The type of pension (basically only pensions), the group of beneficiaries, the insured person and the amount of the benefit are determined by law or the articles of association. Adaptation to individual needs is not possible or only possible to a very limited extent.

c) Need for supplement the basic pension exists
(1) by type: parental benefits, capital in addition to pension, child-raising pensions, retirement benefits before the statutory age limit, etc .;
(2) according to the amount: The statutory pension insurance often leaves a gap in coverage. After a successful working life, the old-age pension in the salaried employee and workers' pension insurance is only around 45 percent of the last gross earnings. The pension gap is even higher if the gross earnings were above the income threshold, or if occupational disability or reduced earning capacity occurs many years before reaching the age limit. The coverage gap is also significant when there are large gaps in the insurance biography. The demographic development in Germany is causing growing supply problems, as fewer and fewer people will have to finance more and more pensioners in the future.

2. Company pension: Old-age, disability or survivors' benefits in connection with an employment relationship. Since 2002 there has been a legal obligation for employers to offer a company pension scheme (Section 1a I Company Pension Act; see deferred compensation)

3. Individual provision: Any type of asset accumulation (especially private life insurance, as well as e.g. investment savings in a pension fund) and also voluntary insurance in the statutory pension insurance. A survivor's insurance and a provision in the event of disability are not yet achieved. Comprehensive protection is only created with accompanying risk and occupational disability insurance.

4. Gaps In the system of old-age and survivors' pensions, social assistance and welfare services are concluded within the framework of subsidiarity (subsidiarity).


The multi-level pension for old age and survivors has been expressly recognized and promoted by all previous federal governments. To the special support measures include: securing statutory pension insurance, creating professional pension institutions, tax exemption for employers' contributions to statutory pension insurance, tax exemption for social pension funds, tax incentives for company pension schemes, benefits for pension expenses as well as tax exemptions and tax exemptions.