How high should my occupational disability pension be?

The right pension amount depends on your real cost structure rather than on a salesperson's default value. Start by working out, honestly, what you would actually need every month if your salary stopped tomorrow: rent or mortgage, utilities, food, transport, basic insurances, family obligations, and a small reserve for unexpected replacements and emergencies.

That number is usually well below your current net income — but it should be high enough that you would not have to liquidate investments, sell a property at the wrong time, or move countries just to manage. The common rule of thumb in Germany is to aim for around 70–80% of current net income, which is a reasonable starting point.

For expats, there is one extra question to ask: if you could no longer work, would you actually stay in Germany — or would you move back to your home country? Cost of living can differ enormously, and a pension that's tight in Munich may be very generous in another country.

Set the amount too low and you end up with a comforting policy that doesn't really solve the problem. Set it too high and the premium becomes painful enough that you might cancel exactly the kind of cover you most need. A sensible middle path is to start with a base amount you'll comfortably keep paying, and use Nachversicherungsgarantie (guaranteed adjustment options) to step it up later at predefined life events — marriage, a child, a meaningful pay rise — without going through fresh health questions.