Building wealth

You are getting started

More than half of women put money aside regularly (Association of German Banks, 2026). That's a good way to start.

How much should I put aside before I invest?

The consumer advice centre (Verbraucherzentrale) recommends an emergency fund of three to six months' expenses in an account you can access at any time, such as an instant-access savings account. That way, you don't have to touch your long-term money when the washing machine breaks or you take a break from work. Deposits are protected by law up to €100,000 per bank.

What's an ETF savings plan?

An ETF is a fund that tracks a whole index and so invests in many companies at once. With a savings plan, you pay in a fixed amount every month, with many providers from just a few euros. Plan to leave the money for at least ten years, because prices go up and down along the way.

What should I look for in the costs?

Compare the fund's annual running costs, the account fee and the fee for each savings instalment. As a guide, the costs of the standard retirement investment account from 2027 may be no more than 1% a year. Anything well above that eats up a noticeable share of your return over the years.

What's the new retirement investment account?

From 1 January 2027, there will be a state-supported retirement investment account (Altersvorsorgedepot). For up to €1,800 a year of your own contributions, you get up to €540 in top-up payments, plus up to €300 per child. In return, the money is tied up until retirement, so a savings plan you can access freely alongside it still makes sense. You can only take out new Riester contracts (the previous state-supported pension plan) until the end of 2026.

What you can do now

1. Add up your monthly expenses and put three to six months' worth aside as an emergency fund in a separate instant-access savings account.
2. Compare the running fund costs, the account fee and the fee per savings instalment at two or three providers.
3. Start a savings plan at an amount you can keep up even in tight months.
4. From January 2027, check whether the retirement investment account is right for you.

How much of your return stays tax-free is covered under Taxes.

You work part-time or are on parental leave

A large part of the later pension gap builds up during part-time work and parental leave. You can make up for some of it if you act in time.

How much pension does part-time work cost me?

If you earn the average for a year, you get one pension point, and since July 2026 this is worth €42.52 of monthly pension. On half a salary, it's half a point, so around €21 less pension a month for every year. How many points you have is shown in your pension statement (Renteninformation).

What do child-raising periods do for me?

For each child born from 1992 onwards, up to three years are counted as if you had earned the average, which is around €127 of monthly pension per child. But these periods are only recorded if you apply for them with the German Pension Insurance (Deutsche Rentenversicherung). From 2027, the three years also apply to children born before 1992.

Should I opt out of pension insurance in my minijob?

If you stay in, you pay a small contribution of your own and build up full contribution periods, which count towards a reduced earning capacity pension, for example. The German Pension Insurance will work out for free whether opting out makes sense for you.

Do I get more support as a mother?

Yes. In the retirement investment account from 2027, the state doubles every euro you pay in, up to €300 per child per year. With small contributions in particular, that's a large share.

What you can do now

1. Check your insurance record with the German Pension Insurance to see whether your child-raising periods are recorded, and apply for them if not.
2. Look up in your pension statement how many pension points you have so far.
3. If you have a minijob, ask the German Pension Insurance to explain what opting out means for you.
4. Make a note of the child top-up in the retirement investment account for 2027.

You are a couple

Whether you have a joint account or keep your money separate, in the end what counts is whose name your savings and pension provision are in.

Joint account or separate accounts?

Many couples combine both, with a joint account for fixed costs and their own accounts for everything else. Who owns the assets matters more than the model. An investment account belongs to the person whose name it is in.

How do we balance things out if I earn less because of the children?

Whoever takes on more care work and earns less as a result builds up a smaller pension and fewer assets of their own. You can balance this out, for example by having the partner with the higher income pay into an investment account in the other partner's name every month. Put this in writing.

Is it enough if one of us takes care of the money?

For everyday matters, yes, but for the overall picture, no. You should both know which accounts, investment accounts, contracts and loans exist and whose name they are in. This matters most in the event of illness, separation or death.

What you can do now

1. Make a list together of all accounts, investment accounts, pension contracts and loans, with the name each one is in.
2. Look at how much in assets and pension provision each of you has in your own name.
3. If one of you cuts back at work, agree on a monthly payment into an investment account in their name and put it in writing.

How to secure this kind of arrangement legally is covered under Law.

You are over 50 and want to catch up

A woman who is 65 today has just over 21 years ahead of her on average (Federal Statistical Office, 2026). So your money has to work for a long time, and it's worth starting even now.

Is investing still worth it at 50?

Yes, because the time span is longer than it feels: it runs until retirement and then for another two decades. The new retirement investment account also pays out until at least the age of 85.

How do I find out how big my gap is?

From the age of 55, the German Pension Insurance sends you a detailed pension report (Rentenauskunft) every three years, and at any time on request, free of charge. Since October 2026 it also shows the earliest date you can retire and what's left after health and long-term care contributions. Put your planned expenses in retirement next to it, and you'll see the gap.

Can I buy extra pension points?

From the age of 50, you can make special payments to offset the deductions for retiring early. If you end up retiring later after all, the money increases your pension. You don't get it back.

What if periods are missing from my pension account?

Training, children or caring for relatives are often missing from the insurance record. You can have them added with an account clarification (Kontenklärung) at the German Pension Insurance.

What you can do now

1. Request an up-to-date pension report and put your expenses in retirement next to it.
2. Check your insurance record for gaps and apply for an account clarification.
3. Have someone calculate what it would cost to offset the deductions with a special payment.

You are separating

One in six divorces comes after 25 or more years of marriage (Federal Statistical Office, 2026). Often, most of the pension provision is then in the partner's name.

What happens to our pension rights?

In a divorce, all pension rights you built up during the marriage are halved and shared, including company pensions and private pension contracts. The family court carries out this pension rights adjustment (Versorgungsausgleich) of its own accord. For a marriage of three years or less, it only does so if one of you applies for it.

And if we weren't married?

Then there's no pension rights adjustment. What was saved in your partner's name stays with him. That's why it matters whose name your pension provision is in, especially if you're not married.

What about joint loans?

With a joint loan, each of you is liable for the full amount, even after the separation. Also check who can access joint accounts and investment accounts and which powers of attorney exist.

What you can do now

1. List all accounts, investment accounts, pension contracts, loans and powers of attorney, no matter whose name they are in.
2. Request your own pension statement so you can see what you're entitled to.
3. Change the powers of attorney for accounts and investment accounts you no longer want to share.

The legal side of separation is covered under Law.

You are self-employed

Most self-employed people don't have to pay into the state pension scheme. So how much you put aside for retirement is entirely up to you.

Do I have to pay into the state pension scheme if I'm self-employed?

Usually not. There are exceptions, for example for teachers, midwives and self-employed nurses, for artists and writers through the Künstlersozialkasse (artists' social insurance fund) and for the self-employed with only one client. Within five years of starting, you can apply to be compulsorily insured.

Do I get state support if I'm self-employed?

From 2027, yes. In the new retirement investment account, the self-employed are eligible for support for the first time, with the same top-up as employees. Until now they were mostly excluded from Riester.

What's the Basisrente?

The Basisrente (basic pension), also known as the Rürup pension, is a pension contract whose contributions you can deduct from your tax to a large extent. In return, the money is tied up until retirement, and you can't take it out early or have it paid out as a lump sum.

How much should I set aside?

There's no fixed rate. As a guide, employees and their employer together pay 18.6% of gross pay into the pension system. If you set aside much less, you're less well covered than an employee with the same income.

What you can do now

1. Ask the German Pension Insurance to check whether your work already requires you to pay into the state pension scheme.
2. If you've been self-employed for less than five years, check whether you can still apply for compulsory insurance.
3. Work out what 18.6% of your monthly profit would be, and compare it with what you set aside today.
4. From 2027, look into the retirement investment account.

You inherit or suddenly come into money

In 2025, €141.1 billion was inherited and given away in Germany, 23.1% more than the year before (Federal Statistical Office, 2026). A large sum often attracts people who want to sell you something quickly.

Do I have to decide straight away what to do with the money?

No. First put the money somewhere safe and accessible, such as an instant-access savings account, and take your time. If you let yourself be rushed, you're more likely to sign something that isn't right for you.

Is my money safe if it's more than €100,000?

Statutory deposit protection covers €100,000 per bank. After an inheritance, a divorce or the sale of your own home, higher protection of up to €500,000 applies for a limited time. Securities in your investment account remain your property in any case, even if the bank goes bust.

Should I pay off debts or invest?

Paying off expensive loans like an overdraft or a personal loan first usually brings you more than any investment. With a low-cost mortgage and a long fixed-rate period, it's worth comparing the two.

What you can do now

1. Put the money in an instant-access savings account for now and, if it's more than €100,000, spread it across several banks.
2. Write down your debts with their interest rates and pay off the most expensive ones first.
3. Give yourself a few weeks before you make any larger investment decisions.

Tax-free allowances and inheritance tax are covered under Taxes.

You are thinking of buying property as an investment

A rented-out flat ties up a lot of money in a single place. Whether it pays off only becomes clear once you've done the numbers after all costs.

How do I work out whether a flat is worth it?

Divide the annual rent excluding service charges and heating (Nettokaltmiete) by the purchase price, and you have the gross rental yield. From this, subtract the purchase costs, service charges you can't pass on to tenants, reserves for repairs, vacancies and interest. Only what's left after that is your actual return.

What does financing cost at the moment?

For a ten-year fixed rate, mortgage rates were around 4 to 4.5% in autumn 2026, depending on the lender (Dr. Klein, 2026). Prices for flats and houses rose by only 0.6% year on year in the second quarter of 2026 (Federal Statistical Office, 2026). A calculation that only works if prices rise is therefore risky.

What extra costs come with buying?

Property transfer tax (Grunderwerbsteuer) of between 3.5 and 6.5% depending on the federal state, notary and land registry fees, and often an estate agent's commission. The bank usually doesn't finance these costs, so you need to pay them from your own funds.

What you can do now

1. For a specific flat, work out the return after extra costs, reserves and interest.
2. Check how much of your own money you need just for the purchase costs.
3. Work out whether you could still pay the instalment if the flat had no rent coming in for a few months.

What to look out for legally when buying is covered under Law.

You are ill for a long time

A long illness costs you income and often pension too. How well you're protected is something you decide while you're healthy.

How much money will I be short with sickness benefit?

Sickness benefit is 70% of your gross salary, at most 90% of your net pay, and contributions to pension, unemployment and long-term care insurance are still deducted from it. In 2026, the maximum is €135.63 a day before deductions. If you earn more, the gap is correspondingly larger.

What if I can no longer work at all?

Then you may be entitled to a reduced earning capacity pension. You need five years in the statutory pension scheme, including at least three years of compulsory contributions in the last five years, and time spent raising children or receiving sickness benefit counts. The pension is usually much lower than your last salary.

Do I need occupational disability insurance?

It pays an agreed pension if you can no longer work in your profession, so it kicks in earlier than the statutory pension. You can only take it out while you're healthy, and the younger you are, the cheaper it is. Answer the health questions in full, otherwise the insurer may refuse to pay out later.

How big should my emergency fund be?

Three to six months of expenses in an instant-access savings account. It bridges the time until sickness benefit or an insurance policy pays out, and protects your investments from having to be sold at the wrong moment.

What you can do now

1. Ask your health insurer how much sickness benefit you'd receive, and work out how much you'd be short each month.
2. Build an emergency fund of three to six months of expenses.
3. Get quotes for occupational disability insurance while you're healthy, ideally through an independent fee-based adviser.
4. Check your pension statement to see how much your pension would be today if you could no longer work at all.