For years, a German pension has been considered among workers from Croatia as a synonym for financial security in old age.

However, precise calculations show that the German system rests on very exact rules that often contradict unrealistic expectations. Although the threshold for qualifying for an old-age pension is set relatively low, the final amounts largely depend on years of service and paid contributions.

Minimum service period as a ticket into the system

The basic prerequisite for qualifying for a German old-age pension is a minimum insurance period of 5 years, or 60 months. Compared with many other European countries, this threshold is significantly lower. However, it is important to emphasize that meeting this condition does not automatically mean retirement. In addition to years of service, the beneficiary must also meet the prescribed age limit determined by German law.

The pension points system and their value

The value of a German pension is not calculated as a flat rate, but is based on accumulated pension points. A worker who earns the average German gross salary during one calendar year acquires one pension point. According to official information from Deutsche Rentenversicherung, the current value of that point amounts to 40.79 euros per month.

Let us take as an example a worker who earned the average salary for five years and thereby accumulated five pension points. A simple calculation leads to an amount of 203.95 euros gross monthly pension. This figure clearly illustrates that a short period of work with average earnings results in an amount that is by no means sufficient for independent living, but merely represents a supplement to total income in old age.

Announced pension increase from July 2026

According to the announced adjustment published on the pages of the Federal Ministry of Labour and Social Affairs (BMAS), the value of pensions in Germany is regularly adjusted.

From 1 July 2026, an increase in the value of the pension point to 42.52 euros is planned, representing an increase of 4.24%. In other words, from that date not only future pensions will rise, but also statutory pensions that are already being paid. The reason is simple: the German pension is calculated according to the number of acquired pension points, and with the adjustment the value of each point increases.

Retirees do not receive new points; rather, their existing points are worth more. Therefore, a person who has five pension points will have 212.60 euros gross per month instead of 203.95 euros gross per month. For people with longer service and a higher number of points, the increase in euros will be greater, although the percentage increase is the same. Still, for workers with short service, the nominal difference remains small.

The difference between working in Germany and German insurance

For workers from Croatia, the decisive difference lies in where the contributions were paid. It is a common misconception that physical work on German soil automatically guarantees a German pension. If a worker is employed directly by a German employer, contributions are paid into the local fund, that is, into the German pension system, and German points are accumulated.

On the other hand, workers sent to work in Germany by Croatian employers with an A1 certificate remain insured in the Croatian system. In that case, years of service and contributions are recorded in Croatia, regardless of the fact that the work was performed on German construction sites or in industries. When qualifying for a pension, each state will pay that part of the pension for which contributions were paid into its system.

Flexibility of working in retirement

The modernization of the German system has also brought significant changes regarding additional earnings. Since 2023, restrictions for old-age pension recipients have been abolished, which means that retirees can work and earn without a reduction in pension benefits. Certain restrictions still exist for disability pensions, but they too have been adjusted in order to enable greater financial flexibility for users of the system.

Although the German system offers clear rules and security, five years of service in most cases brings only a symbolic pension amount. It is crucial that workers check their insurance status in time and inform themselves about which system their contributions are being paid into. Long-term financial stability in retirement does not depend on the place of work, but on the continuity and amount of payments into the pension system, with the German part being only one of the components in the total sum of future income.