A Guide to Spending Your Golden Years in the Heart of Europe
If you dream of spending your golden years abroad but haven’t settled on a destination yet, you might want to consider retiring in Germany. This central European gem offers high-quality healthcare, excellent public transportation, low crime rates, and minimal pollution, making it an ideal place for a peaceful and fulfilling retirement.
However, Germany isn’t just a safe and practical choice – it's also brimming with history, culture, and natural beauty. From lively festivals and cozy beer gardens to enchanting castles and scenic forests, there’s something for everyone to enjoy.
What’s more, Germany offers various immigration pathways to help retirees make the transition. But is Germany the right destination for you? We’ve done the research to help you make an informed decision. Let’s dive into everything you need to know, including the country’s visa system, healthcare options, cost of living, the best cities for retirees, and more.
If you dream of spending your golden years abroad but haven’t settled on a destination yet, you might want to consider retiring in Germany. This central European gem offers high-quality healthcare, excellent public transportation, low crime rates, and minimal pollution, making it an ideal place for a peaceful and fulfilling retirement.
However, Germany isn’t just a safe and practical choice – it's also brimming with history, culture, and natural beauty. From lively festivals and cozy beer gardens to enchanting castles and scenic forests, there’s something for everyone to enjoy.
What’s more, Germany offers various immigration pathways to help retirees make the transition. But is Germany the right destination for you? We’ve done the research to help you make an informed decision. Let’s dive into everything you need to know, including the country’s visa system, healthcare options, cost of living, the best cities for retirees, and more.
Is Germany a Good Place to Retire as a Foreigner?
Germany offers many advantages for retirees, making it an appealing destination for those seeking an affordable, high-quality lifestyle in the heart of Europe. With a rich history, stable economy, and excellent living standards, the country provides an ideal setting for a fulfilling retirement.
Let’s explore why Germany could be a great place to spend your golden years:
The Pros of Retiring in Germany
One of the biggest advantages of retiring in Germany is its affordable cost of living. According to 2024 data from Numbeo, Germany’s Cost of Living Index is 62.7, which is lower than neighboring European countries like Switzerland (112.2), Austria (66.8), and France (66.0).
Moreover, living in Germany costs 35% less than in the United States, which is good news for Americans seeking a more budget-friendly lifestyle without sacrificing quality.
Safety is another significant benefit. The 2024 Global Peace Index ranks Germany as the 20th safest country in the world, making it an ideal place for retirees seeking peace of mind.
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For retirees who love to travel, Germany’s extensive railway system makes it easy to visit neighboring EU countries like Austria, Switzerland, Spain, and France, with seamless connections to local networks in these countries.
That said, there’s certainly no shortage of cultural and historical landmarks to explore in Germany itself. The country is home to 54 UNESCO World Heritage Sites (only Italy and China have more), and retirees can immerse themselves in everything from ancient cathedrals to Ice Age art and picturesque castles.
Foreigners looking to retire in Germany can also rest assured that they are in safe hands when it comes to healthcare. Germany's healthcare system ranks 8th globally in the 2024 CEOWORLD Health Care Index and is known for its excellent infrastructure and the availability of both public and private medical services.
However, foreign retirees should consider purchasing private health insurance for more comprehensive coverage and access to private facilities.
Germany’s charming villages offer a tranquil setting for those looking for a peaceful retirement. Alternatively, the country's vibrant urban centers provide ample cultural activities and amenities for those who prefer a more active lifestyle.
The Cons of Retiring in Germany
Germany can be simply wonderful in the summer, with its crisp blue skies, abundant sunshine, and perfectly warm temperatures creating the ideal setting for an active outdoor lifestyle.
From hiking in the Alps to cycling through vineyards, the summer offers plenty of opportunities for exploration and relaxation in the country's picturesque landscapes.
However, as with much of Europe, the winter can be a stark contrast. These months are typically cold, cloudy, and damp, with frequent rain or snow, particularly in the northern regions.
The southern and mountainous areas can experience heavier snowfall, creating a winter wonderland ideal for skiing and winter sports. Despite the chill, Germany’s lush green countryside, charming villages, and cozy towns remain inviting year-round.
While learning German can be useful for foreign retirees, mastering the finer points of German grammar can be tricky. They should also be aware that several regional dialects are spoken across the country, which can make it difficult to communicate in small towns and rural areas. However, given that around 56% of the population speaks English as a second language, getting by in major cities shouldn't be a problem.
Germany’s tax system may also be a drawback for some. The top marginal income tax rate is 45%, which is much higher than the U.S.’s top rate of 37%. Expats may want to hire an international accountant or financial advisor to help navigate tax obligations in both countries.
As with any destination, Germany has its pros and cons. By weighing these factors carefully, you can determine whether it’s the ideal place for your retirement.
Read More: Finding Help to Navigate Expat Tax Matters
The Best Places to Retire in Germany
We reviewed several quality-of-life factors to pinpoint the best places for foreign retirees in Germany. These include cost of living, crime rates, healthcare quality, access to nature and urban green spaces, walkability, cultural attractions, and more.
Berlin
With a population of over three million, Germany's capital, Berlin, is the largest city in the country and one of its most dynamic. Known for its vibrant nightlife, outstanding restaurants, and family-friendly activities, it’s also a welcoming destination for immigrants.
More than 800,000 expats have made Berlin their home, drawn by the city’s multicultural atmosphere and cosmopolitan vibe. Crime rates are low, public transportation is fast and reliable, and the city's green spaces, such as Tiergarten, are unmatched.
Cologne
Located on the Rhine River, Cologne is a lively, welcoming city with a population of one million people. It’s known for its stunning botanical gardens and iconic Kölner Dom (Cologne Cathedral), a UNESCO World Heritage site and one of Europe’s largest Gothic cathedrals.
The city offers a unique blend of history and modernity, with renowned festivals like Karneval and traditional Christmas markets attracting people worldwide. Compared to larger cities like Munich or Frankfurt, Cologne is also a more affordable option for retirees. With over 20 hospitals, an extensive public transport system, and tranquil parks, it offers everything they might need.
Jena
Nestled along the scenic Saale River, Jena is a quiet and affordable city with a population of 100,000. While it may not be as well-known as other German cities on this list, it offers numerous advantages for retirees.
As one of Germany’s safest cities, Jena provides a welcoming environment for newcomers, making it particularly popular with retirees. Its lively, walkable streets are lined with cafes, restaurants, and shops, and just beyond the city limits, nature lovers can enjoy peaceful surroundings, including wild orchids growing in the landscape.
Jena also boasts a thriving cultural scene featuring attractions like the Optical Museum and Zeiss Planetarium. The city is also home to some of Germany’s top doctors and medical researchers, ensuring retirees can access excellent healthcare.
Leipzig
Leipzig is a small yet charming city with a lot to offer. Located about 100 miles from Berlin, it features centuries-old Renaissance buildings and was once one of the wealthiest cities in Germany. Its affordable cost of living attracts many foreigners, including retirees looking to avoid big-city prices.
Today, Leipzig is known for its vibrant arts and music scene, bustling nightlife, year-round festivals, and numerous parks and gardens. It is also one of Germany’s greenest cities, with flat terrain and a compact layout that makes it easy to walk around and explore.
Munich
Munich was recently named the “most walkable city in the world," with nearly 86% of its population living within 1 kilometer (0.62 miles) of a car-free zone and a healthcare facility.
The city features excellent public transport and extensive walking and cycling paths, making it ideal for those who want to retire in a mid-sized city without needing a car.
This picturesque city also offers a mild climate, world-class museums, and inviting public parks like the famed Englischer Garten. Food enthusiasts will delight in the city’s 20-plus Michelin-starred restaurants, while nature lovers can enjoy hiking and skiing in the nearby Munich Alps.
How Much Does It Cost to Retire in Germany?
Whether you plan to live off savings, a retirement fund, social security, or a private pension plan, foreigners looking to retire in Germany should understand what living costs they can expect once they relocate.
According to July 2024 data from Numbeo and Livingcost.org, the average monthly living expense in Germany (excluding rent) is $1,740 per person.
Fortunately, the German real estate market is more affordable than in many other European countries. Renting a property, for example, ranges from $832 per month for a one-bedroom apartment outside a city center to $1,850 for a three-bedroom apartment in the city center.
Overall, living in Germany costs 35% less than in the United States and 45% less than in neighboring Switzerland. It is also 17% cheaper than Australia and 8% cheaper than the United Kingdom.
However, like in any country, living costs can vary significantly depending on the city. Urban centers like Berlin ($2,200), Munich ($2,400), and Cologne ($1,900) tend to have higher living expenses. Retirees looking for a more affordable option may consider settling in smaller towns, such as Leipzig ($1,500), where costs are lower.
Local prices in Germany can vary depending on the region. Here’s an overview of what you can expect to pay for essential goods and services:
- Three-course meal for two (mid-range restaurant): $71
- One gallon of milk: $4.65
- One bottle of wine (mid-range): $7.10
- One dozen eggs: $3.95
- Monthly internet plan: $54
- Monthly phone plan: $34
- Pair of movie tickets: $27.50
- Monthly public transport pass: $62
- Visit to doctor’s office: $68
What Are the Requirements to Retire in Germany as a Foreigner?
Germany does not offer a specific retirement visa. However, there are several other long-term visa options that non-EU citizens, including Americans, may qualify for:
- Family Visa: If you have close family members who are legal residents or hold German citizenship, you may be eligible for a family visa to join them in Germany.
- Business/Investor Visa: If you plan to start a business or invest in an existing German business, you may qualify for an investor visa. The minimum investment required is €360,000 (approximately US$386,550), although this can vary by state.
- Self-Employed/Freelancer Visa: Retirees who wish to start their own business or work as freelancers may apply for a self-employment visa. To qualify, you must demonstrate that your work will benefit Germany economically and meet specific financial requirements.
The lack of a retirement visa can make it difficult for expats to retire in Germany. Depending on your career, you may want to consider working your last few years on a German work visa, as this may offer a better pathway to retiring in the country.
For more detailed information on visa options, visit the German Federal Foreign Office’s visa services site.
Can U.S. Citizens Retire in Germany?
Yes, U.S. citizens can retire in Germany, provided they obtain a long-term visa or residence permit that allows them to stay for more than 90 days.
Can U.S. Citizens Collect Social Security in Germany?
Yes, U.S. citizens can collect Social Security benefits while living in Germany. If you are of retirement age and eligible for benefits, the Social Security Administration can directly deposit monthly payments into either a U.S. or German bank account.
Will Germany Tax My U.S. Social Security Benefits?
Yes, Germany will tax your Social Security benefits. However, thanks to an international tax treaty between the U.S. and Germany, you won't be taxed on the same income twice. The U.S. will not tax your benefits, ensuring you're not double-taxed.
Read More: Can You Live on Social Security While Living Abroad?
Do Expats Get Free Healthcare in Germany?
The healthcare system in Germany can be complex and might be difficult for foreigners to navigate at first. Some of the confusion comes from the fact that there are both private and public systems. However, having a basic understanding of the system can make things easier.
Private vs Public Healthcare in Germany
Germany’s healthcare system provides high-quality services through a combination of public and private healthcare providers. All residents, including foreign retirees, are required by law to have either public or private health insurance.
The type of insurance you qualify for will depend on factors such as income, residency status, and your long-term plans in Germany. There are a variety of excellent health plans to choose from, ensuring you can find coverage that suits your needs.
Health Insurance for Retirees in Germany
The German visa system requires proof of medical insurance before entering the country. Therefore, retirees are generally encouraged to purchase an international private health insurance plan before arriving in Germany.
There are several great health plans to choose from, including:
IMG Global Prima Medical Insurance Plan
- Five plan options and additional optional benefits to include
- Choice of the coverage area to reflect your geographical area of need
- Freedom to choose your health care provider wherever you are in the world
Cigna Global Medical Plan
- Flexibility to tailor plans to suit your individual needs
- Access to Cigna Global’s network of trusted doctors
- Convenience and confidence of 24/7/365 customer service
Notably, U.S. citizens planning on moving to Germany can also apply for the following:
Xplorer Worldwide Medical Plan
- Premium Benefits, Coverage and Service
- Define your deductible and prescription benefits
- For Foreigners in the US or US Citizens Abroad
You can explore available health plans and request quotes at International Citizens Insurance.
Does Germany Accept Medicare?
No, retirees from the U.S. cannot use Medicare insurance to pay for medical services in Germany. Medicare only covers medical expenses within the 50 states and U.S. territories, so it is not accepted in Germany.
Read More: Hospitals in Germany
Does Your Retirement Plan Include Moving to Germany?
Whether you dream of an early retirement abroad or plan to continue working into your later years, relocating to Germany is definitely worth considering.
The country offers a safe, stable environment and is known for its world-class healthcare system. With both public and private options, retirees can rest assured knowing they’ll have access to excellent medical care throughout the country.
Germany is also a great destination for those who enjoy culture, history, and lifelong learning. The country offers low-cost or even free higher education for both citizens and immigrants, making it an ideal place for retirees who want to continue their studies.
If you're ready to retire and join the nearly 14 million immigrants already living in Germany, it’s important to plan your move carefully. From understanding the visa and residency requirements to securing the right healthcare coverage, there’s much to consider. Be sure to check out our expert insurance advice for retiring abroad before you make the move so you can enjoy your new life in Germany with peace of mind.
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