Pensions Overseas: German Pension Insurance Doles Out 12,600 Pensions Abroad
Foreign Pension Plan Provides 12,600 EURO Monthly Pensions Overseas - Overseas payments of pension insurance total 12,600 recipients
Ever wondered where your pension contributions go if you decide to retire abroad? Let's dig into the details!
The German Pension Insurance, Mitteldeutschland, has quite a global reach, disbursing around 12,600 pensions to far-flung locations. A whopping 96% of these payments, amounting to approximately 12,100, head towards EU member states—that's about 0.8% of the total pension payouts in Saxony, Saxony-Anhalt, and Thuringia.
On the occasion of Europe Day on May 9, the German Pension Insurance took the opportunity to clarify that working and living in the European Union doesn't come with any disadvantages in social security. In fact, around 3,600 pensions are handed to hard-working German retirees residing overseas, with the majority, about 3,300, living in EU countries. The number of such pensioners has seen a staggering 55% increase within the last five years.
Due to the strengthened free movement of workers, many EU citizens have been drawn to Germany in search of opportunities. Counting the last tally, there were around 35,600 foreign workers in Saxony, compared to 24,700 five years ago. The numbers tell a similar story in Saxony-Anhalt and Thuringia; over the past five years, the foreign workforce has expanded from roughly 12,100 to about 24,300 in Thuringia.
Middle-Germany based German Pension Insurance, headquartered in Leipzig, makes around 1.5 million monthly pension payments in total.
For the record:
- German Pension Insurance
- Pension Insurance
- EU
- Mitteldeutschland
- Saxony
- Saxony-Anhalt
- Thuringia
Insights:
- In the EU, Germany has agreements that allow for the coordination of pension rights. Each country calculates and pays the pension earned within its borders, following EU social security coordination rules.
- For non-EU countries, Germany has bilateral social security agreements permitting similar coordination of pension rights. The list of countries with such agreements is available on the German Pension Insurance website.
- The average monthly gross pension in Germany is forecasted to be around €1,543, reflecting the overall pension system's financial stability.
- The EU's social security coordination system ensures that pensioners who've worked across multiple EU countries can receive pensions from each country they've contributed to, without duplication of benefits.
- With an aging population and increasing life expectancy, Germany faces demographic challenges. Adjustments to pension systems, such as changes to contribution rates and retirement ages, aim to ensure financial stability.
- Maintaining international coordination with EU and other countries will remain vital in managing pension payments and ensuring retirees receive fair and timely benefits, regardless of their work history across borders.
- The German Pension Insurance, located in Leipzig, provides vocational training to ensure the workforce remains competent and beneficial for the economy.
- To strengthen the financial aspect of the retirement system and cater to the increasing number of retirees, the German Pension Insurance has been focusing on strengthening its policies to ensure a smooth pension transition.
- The German government is considering implementing vocational training programs to help disadvantaged groups, such as the unemployed or those at risk of social exclusion, in Saxony, Saxony-Anhalt, and Thuringia.
- Although pensions overseas might seem complex, citizens are encouraged to seek information about their pension rights through vocational training courses provided by the German Pension Insurance.
- In the future, the German Pension Insurance aims to continue its collaboration with the government and the business sector to finance the pension system and provide suitable pension solutions for the general-news audience.
