Retirement abroad: Where Germans now prefer to live!

Retirement abroad: Where Germans now prefer to live!

German retirees are increasingly moving abroad where they want to enjoy their retirement. The neighboring countries Austria and Switzerland are particularly popular. Loud Mercury 29,000 German pensioners have already decided to retire in Austria, which is reflected, for example, in vibrant cities such as Vienna, Salzburg and Innsbruck. A total of 98,000 pension payments are transferred to foreign pensioners in Austria, making it clear that the country is a sought-after destination for retirees.

Switzerland follows with 26,000 payments to German pensioners. However, the cost of living here is higher than in Germany, which could be a deciding factor for some. Spain, where 23,000 German pensioners live, secures its place on the podium of the most popular retirement destinations. It turns out that the south of Europe is attractive for many retirees.

The best emigration destinations

But how different is life abroad? Loud Pensioner24 Four crucial aspects are relevant for a good life in retirement: money, health, quality of life and the living situation. With an average pension of 1,152 euros per month, it will be difficult for many pensioners to live carefree in Germany. It is even more worthwhile to take a look at the cost of living in other countries. Spain (11% cheaper), Greece (19% cheaper) and Bulgaria (45% cheaper) appear particularly attractive.

Healthcare for EU citizens is also an important factor. In most European countries, pensioners are entitled to the same medical care as locals, while long-term care insurance also applies in the EEA and Switzerland. However, private insurance is necessary outside the EU.

Pension transfer abroad

A common concern when moving abroad is the question of what your pension will look like. Information from the German pension insurance indicate that that the pension payment remains unchanged during a temporary stay. Even if you move permanently to an EU country or Switzerland, the pension will usually continue to be paid in full. The situation is different if you move to a country without a social security agreement, as restrictions could arise here, which is why advice is recommended before moving.

In order to ensure a smooth process, it is important to inform the pension service in a timely manner. This must be done at least two months in advance if the bank details change or you move. Transferring the pension to a foreign bank account is considered the safest method, although additional fees may apply for transfers outside the SEPA area.

Finally, tax aspects also play a role when retiring abroad. For stays of less than six months, the tax liability remains unchanged, while if you move permanently, the basic tax allowance no longer applies and taxation applies from the first euro. The 90 percent rule allows you to apply for unlimited tax liability if the majority of your income comes from Germany.

Overall, it appears that many Germans are actively working to spend their retirement in one of the most desirable countries. Discussing the cost of living, health care and pension entitlements is crucial for a worry-free time abroad.