Overseas Pensions: Germany's Pension Insurance Disburses 12,600 Pensions Abroad
Foreign pension benefits distributed to approximately 12,600 recipients residing abroad. - Overseas Recipients Collect 12,600 Benefits from Pension Insurance Scheme
Here's the lowdown: Germany's Pension Insurance, Mitteldeutschland, dishes out approximately 12,600 pensions to retirees residing overseas, with a whopping 96% of those pensions heading to EU member states. That's roughly 0.8% of all monthly pension payments made in Saxony, Saxony-Anhalt, and Thuringia.
You might be wondering, what's the catch with social security if a person lives and works in the European Union? Well, the German Pension Insurance cleared things up on Europe Day, May 9th. They said there's no hiccup when it comes to social security if you're working in the EU.
As for German retirees, around 3,600 pensions are handed out to those enjoying the sun, sea, and sand (or maybe just the retirement life) abroad. approximation 3,300 of them are chillin' in EU countries. In contrast, five years ago, there were only 2,200 payments - that's a 55% increase!
Now check this out: The stats from the German Pension Insurance Mitteldeutschland reveal that more and more people from EU states are securing their nest eggs in Saxony, Saxony-Anhalt, and Thuringia while contributing to the pension insurance. In Saxony, for instance, the number of workers from other EU countries jumped from around 24,700 five years ago to approximately 35,600 today. The same story unfolds in Saxony-Anhalt and Thuringia, with an increase from around 12,100 to approximately 18,600, and 17,100 to approximately 24,300, respectively, over the past five years.
The German Pension Insurance Mitteldeutschland, based in Leipzig, forks out around 1.5 million pensions each month, according to their own numbers.
- German Pension Insurance
- Pension Insurance
- EU
- Middle Germany
- Saxony
- Saxony-Anhalt
- Thuringia
So, what's the deal with these overseas pensions? Well, the German Pension Insurance takes into account insurance periods worked both within Germany and other countries. If a retiree has worked in Germany and other EU countries, or countries with which Germany has a social security agreement (known as "Abkommensstaaten"), their insurance periods in these countries are combined to meet the minimum insurance contribution requirements for pension eligibility. However, rather than receiving a single, combined pension payment, the retiree receives separate pension payments from each country where they've accrued entitlements. This means retirees might end up with multiple pensions from different countries, each subject to that country's retirement age and pension rules.
The uptick in pensions paid to German retirees abroad over the past five years reflects both demographic trends, such as more Germans opting for a sunny retirement, and improved administrative cooperation across EU states to facilitate pension payment distribution.
- The German Pension Insurance, based in Leipzig, known as Mitteldeutschland, administrates around 1.5 million pensions each month, including approximately 12,600 pensions distributed to retirees residing overseas.
- In the garnered statistics from the German Pension Insurance, it is revealed that more and more people from EU states are securing their retirement benefits in the regions of Saxony, Saxony-Anhalt, and Thuringia, contributing to the pension insurance.
- The German Pension Insurance, in general, takes into account insurance periods worked not only within Germany but also in other countries, particularly EU member states or countries with which Germany has a social security agreement.
- If a retiree has worked in Germany and other EU countries, or countries with which Germany has a social security agreement, their insurance periods in these countries are combined to meet the minimum insurance contribution requirements for pension eligibility.
- It is important to note that retirees who have accrued entitlements in multiple countries may end up with multiple pensions from different nations, each subject to that country's unique retirement age and pension rules.
