What is a German pension statement and how do I read it?

Once you have been contributing to the German pension for at least five years, you will receive an annual report about your German pension called a Renteninformation. This form gives you detailed information about your current pension standing with all of the important figures.

The most important elements are the three numbers on the right-hand side of the document:

• First, your current entitlement in the event of total incapacity for work (Rente wegen voller Erwerbsminderung),
• Second, your current old-age pension entitlement based on contributions already made — without any further contributions,
• Third — and most importantly — your projected entitlement at retirement if you continue earning at your current level.

This last number is only a projection: your true entitlement may be higher or lower, depending on how consistently you pay into your pension and how your salary develops. The Renteninformation is significant because it can help you plan whether you want or need a private pension, long-term investments or other savings plans alongside the statutory system.