Provision for pension refund

Hello all :)

Let me first add that this website is extremely informative and has already helped me substantially. Kudos to the developers and members.

I am a non EU citizen  and have a potential job offer in Germany. I am considering to take it up. I notice that a substantial part of the German salary goes into a pension fund. So I have a couple of questions with respect to this.

1) If I decide to come back to my home country after 3-4 years (or more), can I get a refund of my (and my employer's) deposits in the pension fund.

2) Does a German citizen gets all his deposits in pension at retirement or just a fraction of it? How is the pension at retirement determined ?

Looking forward to your responses.

Thanks
Anmol

1. If you leave the EU for good after 5 years or less, you can get a refund of your own contributions (without interest). The employer contributions (which are equal to yours) will then be lost.
On the other hand, you are only entitled to regular payments in old age if you contributed for 5 years or more.

2. The pension ("Rente") system is not a fund, but a "pay as you go" scheme, where today´s working populations finance pensions of today´s old. If the rules remain the same, you get a regular monthly payment from the time you retire until you die. The amount you get depends on how long and how much you contributed.
Since the ratio of working to old is changing due to an ageing society, it is not expected that this can finance the full living expenses of today´s young. So other ways of saving for old age are required - and there are many possibilities in the market.

Thankyou so much for a prompt and detailed response.

I have one follow up question though with respect to 1).

Do you mean to say that I can get a partial refund only if I stay for less than 5 years in the EU ?

And if I stay for more than 5 years, I am an only entitled to a pension at retirement and no refund ?

Thanks
Anmol

anmol.seth27 :

Do you mean to say that I can get a partial refund only if I stay for less than 5 years in the EU ?
And if I stay for more than 5 years, I am an only entitled to a pension at retirement and no refund ?

Yes, exactly!
I think it is 5 years in Germany, not EU, but you better check this.

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