Pension Insurance Germany

Insurance & Savings 2023: Long-term Goals for Expats in Germany

Learn about long-term insurance and savings goals for expats in Germany in 2023. Get essential tips for securing your financial future abroad.
Expat Insurance Savings 2023
In: Pension Insurance Germany

Embracing expat life in Germany comes with its own set of unique challenges, one being understanding how the complex world of insurance and savings works. When you’re navigating unfamiliar cultural norms and foreign languages, being adequately insured and economically prepared becomes highly essential. This is the reason we've created this comprehensive guide to lift the haze around insurance and savings for you, as an expat in Germany, in 2023 and beyond.

We'll delve into the current state of health, private and non-life insurance in Germany. Then we'll make sense of the 2023 projections for the insurance market, and how emerging global trends might affect you. Unveiling the peculiarities attached to the insurance for immigrants, we'll also equip you with essential tips on choosing the right insurance, understanding mandatory social security, planning for retirement, and parsing through the various insurance companies.

This guide will also focus on presenting a snapshot of the savings environment for expats in Germany, with insightful information about the gross savings rate, household saving rate, and essential financial planning practices. Finally, we'll end with a cherry on top, the additional resources available to you as an expat - such as lucrative investment options, understanding the impact of tax and currency fluctuations, handy financial planning tools, and the role language skills can play in all of this.

Fasten your seatbelts as we take this enlightening journey down the road of insurance and savings for expats in Germany. This guide isn't just about throwing numbers and statistics at you: it's about equipping you with the knowledge that will make your financial journey in Germany less daunting and more fruitful.

Current State of Insurance in Germany

Insurance, as we all know, serves as a safety net in times of unpredictable events. It's a financial saving grace during the hard times - whether it's due to health issues or property damage. But, have you ever stopped to consider its state in one of the world's leading countries, Germany? 🇩🇪

Renowned for its efficiency and rich history, Germany has an equally efficient and robust insurance sector to match. Primarily encompassing health insurance, private health insurance, and non-life insurance, the sector has painted an intriguing picture as it stands today.

Forecast for Insurance & Savings in 2023

As we brace ourselves for 2023, the dynamics of the insurance and savings industry are expected to undergo fascinating shifts. Navigating these changes effectively will make the difference between those who outperform and those who underwhelm. With us, you can stay ahead of the curve and find the right opportunities in the insurance sector.

Health Insurance 💉

Healthcare costs have always been on an upward trend and 2023 isn't expected to buck that trend. Owning a health insurance policy becomes more of a necessity with each passing year. To put that into perspective, the cost of public health insurance in Germany is estimated to rise from €11,204 in 2022 to €11,731 in 2023.

These figures force us to ponder some hard-hitting questions. Are we prepared to bear these costs out of our savings? Or should we approach health insurance as a strategic part of our financial planning? Our advice is to opt for the latter 🎯.

Global Insurance 🌍

The ripple effects of changing financial conditions will be felt across the globe. According to data, global insurance premiums are set to grow by a modest 1.1% in 2023 and 1.7% in 2024. This increase underscores the rising demand for insurance coverage and serves as a reminder for us to reevaluate our insurance needs.

Public Health Insurance

Public health insurance offers a safety net for society's most vulnerable. However, the increase in costs and the expected deterioration of the underwriting profitability of the insurance sector in 2023, stabilizing only by 2024, could pose challenges.

The question remains, how can we make public health cover more accessible and affordable? Addressing this issue may require a thorough evaluation of our existing policies and collective efforts to explore new and innovative solutions.

Private Health Insurance

Private health insurance, on the other hand, continues to serve as a lifeline for those drawing an income over a certain threshold. In Germany, it is available for those earning more than €62,550 gross per year. While this fact may feel less inclusive, private health insurance lets individuals access a wider range of services, thus delivering a higher return on investment.

Insurances and savings are two intertwined aspects of a robust financial framework. As we sail into the future, it is key to continually align them with our ever-evolving needs. You might also find our guide on Retirement Planning in Germany insightful as it provides a comprehensive outlook on organizing your golden years. After all, securing tomorrow begins today!

Expats and Insurance

Taking that exciting leap to live and work in another country comes with its unique challenges. One of those is navigating the complex web of insurance policies. As expats, we're often left navigating this vast maze without a guide. But not to worry ‒ we've got your back. In this piece, we'll walk you through a crucial topic: Expats and Insurance.

Choosing the Right Insurance

Firstly, let's tackle one of the most significant challenges expats face - choosing the right insurance. Working overseas, you're exposed to different environments, work practices, health risks, and, most importantly, healthcare systems. Here are a few tips on choosing the right insurance for you:

  • Understand your needs: Your insurance should match your lifestyle, health status, and family needs
  • Research the healthcare system: Familiarise yourself with the healthcare system in your new country
  • Seek Expert advice: There is a plethora of resources on Financial Advice for Expats, use them wisely.

Remember, choosing the right insurance isn't just about finding the cheapest policy but about finding a comprehensive policy that gives you peace of mind.

Mandatory Social Security

Next, let's delve into mandatory social insurance. Here, we're talking about health insurance, pension insurance, and unemployment insurance. Countries like Germany require expats to have these insurances as part of their social security system.

  • Health Insurance: Offers coverage for medical expenses
  • Pension Insurance: Helps individuals save for their long-term future and also provides support if they're no longer able to work. Perfect for retirement planning.
  • Unemployment Insurance: Great fallback option when you're between jobs.

These mandatory insurances aren't just statutory obligations; they are safety nets that will save you from potential financial distress.

Retirement Planning

Speaking of safety nets, let's discuss an important but often overlooked topic - retirement planning. As part of social security, expats are required to contribute to pension insurance. This contribution is a lifeline that secures a comfortable sunset period after those years of hard work. Remember, it's never too early to plan for your retirement.

Insurance Companies

Lastly, insurance companies play a pivotal role in guiding expats to suitable policies. They simplify the terms, conditions, and benefits of various plans, ensuring we make informed choices. They essentially bridge the gap between expats and the insurance world.

In conclusion, moving and living overseas doesn't have to feel like you're bracing yourself for a great tumble down an insurance rabbit hole. With the right guidance, you can effectively navigate through and find the right safety nets for you. Remember, being an expat means taking the chance to explore new opportunities fearlessly. Don't let insurance gaps deter you from this powerful journey. 👍

Savings for Expats in Germany


Welcome! If you're an expatriate residing in Germany, this article is tailor-made for you. Managing finances in a new country can be rough, and saving money can seem like a Herculean task. However, Germany is recognized for its stability, making it an ideal country for savings and financial planning. Here we are going to guide you down the savings highway, focusing majorly on Gross Savings Rate, Household Saving Rate, and Financial Planning in Germany.

Gross Savings Rate

Let's begin with figures that mirror the strength of Germany's economy. The Gross savings ratio in Germany reached a stupendous 11.1% in the second quarter of 2023. This is worth noticing, as it outines the part of Gross National Disposable Income that is saved. In simpler terms, it's the leftover income after the consumption expenditure is subtracted. Taking that into account, the Gross savings rate scaled up to 29.6% in March 2023, offering a cushion for Expats to confidently plan their finances.

Household Saving Rate

But what's the German's secret to save more? The answer to this lies in understanding the Household Saving Rate, which was 20.72% in June 2023. This rate represents a correlation between the total household savings and total disposable income. Meaning, after accommodating all essential expenditures and debts, the remaining income contributes to the savings. Observing the figures, it's clear that Germany offers a supportive environment for inhabitants to save, laying a solid groundwork for you as an expat to build on.

Financial Planning

Now you might be wondering how you can leverage this robust saving culture right? This is where financial planning chimes in. Financial planning is an extensive process that involves the creation of wealth for fulfilling long-term goals such as retirement, buying a home, or even setting up a future business. Astute planning, supplemented with Maximizing Investment Returns could potentially dub you as the next financial guru amongst the expat community in Germany!

Remember, saving is not about compromising your dreams; it’s about budgeting wisely so you can live well and enjoy your life in a new country. Germany’s strong saving culture could be of great aid to not only build your wealth but to also ensure you live comfortably during your stay here. Now, let's dive into the details!

Additional Resources Available for Expats

As expats navigate through their journey in a foreign country, they often encounter unique challenges that may seem overwhelming. From understanding local laws, assimilating into a new culture, to managing finances - the list is extensive but thankfully, there is help available. Here, we’ll delve into the resources expats can tap into, specifically focusing on those residing in Germany. Throughout this section, we'll dig into four key areas:

  1. Investment Options
  2. Tax and Currency Impact
  3. Financial Planning Tools
  4. Language Skills

Investment Options

Expats in Germany have a wide variety of investment options for their financial goals. From fixed deposit accounts and savings bonds, to investment funds and real estate - the choices are vast and, best of all, can be tailored to match specific financial goals and risk tolerances. Whether you're looking to grow your wealth aggressively or create a stable source of income for retirement, there is likely a fitting investment option for you in Germany.

Tax and Currency Impact

As expats, understanding the tax and currency impact is important when planning your finances, especially pensions. Luckily, there are ways to mitigate this impact. A valuable resource for this is our guide on Optimizing Tax Efficiency, which offers practical information to help you navigate the complexities of international taxation.

Financial Planning Tools

Knowing where your money is going and balancing daily expenses with future goals can oftentimes feel overwhelming. Thankfully, various financial planning tools cater to expats, designed to simplify this process. From budgeting software to long-term investment planners, these tools can ensure adequate savings for your long-term goals while keeping your day-to-day finances in check.

Language Skills

Finally, nothing replaces the value of language skills when living abroad. Despite English being a widely spoken language, gaining proficiency in the local language is still a paramount tool for any expat. It not only aids in everyday interactions but also deepens your understanding of the local culture, allowing you to foster deeper connections with the local community.

As we've explored, the resources available to expats go beyond the usual scope of financial advice. While establishing a strong financial strategy is crucial, integrating into your new surroundings and understanding the local customs and languages are just as important.


Ultimately, adjusting to a new country is a significant undertaking. Naturally, the financial transition can often be a whirlwind, with insurance matters and savings goals taking center stage for expats. Germany offers an array of choices when it comes to insurance, making it imperative to understand the landscape and tailor your plan to match your specific needs.

Insurance in Germany, whether public or private, will continue to adapt and innovate in response to growing global healthcare concerns. As an expat, having a grip on these changes would make a huge difference in the way you plan your future.

Long-term savings are a critical piece of the puzzle, giving you the assurance of financial stability and a cushion to rest on. Mapping out a financial roadmap will not only provide a wider perspective but also make sure you hit your goals efficiently.

Don’t forget, you don’t have to navigate this complex journey on your own. At Finanz2Go, our mission is to guide you through these crucial financial decisions, helping you optimize your insurance, taxation, and investments in one comprehensive package. Sure, change can be overwhelming, but with the right guidance, you'll not just survive but thrive!

Through comprehensive reinvention of your financial strategy, let's build the map for your financial journey in Germany, together.

Frequently Asked Questions

  1. What insurance policies should expats consider in Germany?Expats in Germany should consider health insurance, liability insurance, household insurance, and legal insurance to protect themselves and their belongings.
  2. Are expats required to have health insurance in Germany?Yes, health insurance is mandatory for all residents in Germany, including expats. They can choose between statutory health insurance (Gesetzliche Krankenversicherung) or private health insurance (Private Krankenversicherung).
  3. What are the long-term savings options for expats in Germany?Expats in Germany have several long-term savings options, including private and state pensions (Riester Rente), investment funds (Fondssparen), and real estate investment.
  4. How can expats find the best insurance and savings plans in Germany?To find the best insurance and savings plans in Germany, expats should research different providers, compare coverage and rates, seek advice from financial advisors specialized in expat needs, and consider their long-term goals and risk tolerance.
  5. What are the tax implications for expats saving and investing in Germany?Expats in Germany should be aware of the tax implications of their savings and investments. They may be subject to income tax, capital gains tax, and wealth tax, depending on the type of investment and their residency status.
Written by
Fabian Beining - Founder / Senior Consultant
Fabian Beining is a certified independent investment advisor. He specializes in investment funds and will be happy to advise you on the topics of fund-based retirement planning and general investment
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