Skip to main content

Retirement in Germany and Czech Republic: Lerne die Regeln des Spiels und dann spiele besser als alle anderen.

This summer it happened, that we were meeting Jan's parents, who are enjoying their life in Greece. Sun, fresh vegetable, slow traveling, and above all, one another. One of those people who decided to spend their retirement (or at least part of it) and sabbatical abroad. I have to admit, that I feel a huge respect for them. Not that they had such a dream - so many people do. Not even that they travel - so many people do. But that they made the dream truth, that they were able to completely change their way of living, leave everything which makes the life stable (e.g., flat, job, belongings,...) behind and started to really live on the boat with all what they need fitting inside that small place (http://sc-meerkat.de/). That they showed that it is not about excuses why you cannot do what you dream about, but that it is about finding ways how to realize these dreams. Seeing them in their happiness, building up a great team is something which is something that clearly shows that they have chosen the right path.
I always ask myself why there are not more of these people - people who decide to move abroad to spend their time in the destinations which are more pleasant to spend the free time at. When we traveled multiple times to Canary islands for hiking in winter, resorts were full of German and British retired people. No wonder. 700 000 Germans abroad are over 65 years old and in particular on Balearic Islands there are 15 000 German retired people and on Canary islands 27 000. In absolute numbers of German retired people, Switzerland wins, second is US and the third is Austria...So around 1% of German retirees live abroad and pension insurance system transfers about 230,000 pensions to Germans around the world.

On contrary, based on the analysis presented here, where the newspaper calculated an index of the best countries for retirees (costs of living made 50 percent included in the analysis, with the remaining 50 percent affected by medical care, crime rates and corruption) ...results were totally different. As the best country for retirement won Poland and the second was...Czech Republic :). Why? It beats (based on the analysis) in the health care Germany, it is cheaper and very safe and on top of it...it is short distance to visit your grandchildren :).

 And although most of the people in Czech Republic always envy Germans for their salaries and pensions (no matter if there is anything to envy, because pitying yourself is simply one of the negative Czech habits), the truth is, that out of 10 000 000 people, 2 893 665 were in 2018 retired and for 94 915 retirees the pension was transferred abroad and the number is quickly raising (it is already 33 000 more than in 2010). When divided, it means that more than 3 % of Czechs spend their retirement abroad, so actually in relative numbers 3 times more than Germans. In the case of Czechs, the most common destination for retirement isn't Switzerland (to be honest still a bit too expensive for Czech people), but Slovakia, Germany and Poland. Followed by Canada, Switzerland, US, Austria, Australia, Greece, Sweden...but also some pensions go to Seychely, Madagaskar, Marocco, Algeria, Egypt, Peru or Dominican republic...

 When you read this, it doesn't sound that bad, right? Like that also Czech people are learning how to live and not only how to complain.

Maybe you would say that the most important thing is the absolute amount of money Czech and German retired people actually get from the state. And there come some quite surprising facts. At least for me. Germans get 18.7% of the gross monthly salary. And although the state compensate women for the time being with kids at home, the difference between men and women pensions is just huge. The average pension for men in Germany is 1154 euro/month while for women it is only half - 634 euro/month (see here). The company pension gender gap is even wider than that, with women receiving a monthly average of €240 to men’s €593. And there are also big differences between west and east Germany. On top of it, Germans still have to give money from their pensions to the health insurance system. In Czech Republic, the difference between men and women pensions is only 20%  and the average for now is 11850 CZK (474 euro/month). For Prague, is the average about 1000 CZK more and difference between men and women is smaller (only 17%) (here). To my surprise, this is very comparable to women pensions in Germany. 

Another variable which is important to consider is the age of retirement. In Germany it is 65 years for both men and women and this number is gradually raising to 67 years. In Czech Republic it is now 63 years for men and for women the retirement age is only 58 -62 years (based on the number of children, i.e. with two kids it is 60 years) (here). This makes the comparison for women even more equal. Anyway, for people born in 1977 and later the retirement age should be same as in Germany (67 years) independent on age and number of children.

If you take into account that costs in Czech Republic are lower than in Germany, it seems that at least Czech retired women have similar standard of living as the ones in Germany (not saying that it is a huge standard). And it is also a good suggestion to start saving for your pension :)

So there is no more time for excuses, no more time for envy...there is a time to live your life as you imagined it in your dreams. No matter if you are retired in Germany or Czech Republic, there are plenty of options in front of you which are just waiting to be realized.

(sidenote: "Lerne die Regeln des Spiels und dann spiele besser als alle anderen." is a quote by A.Einstein)

Comments

Post a Comment

Popular posts from this blog

First real trip in 2025 - cycling in Germany

  We’ve just returned from the first real trip of the year. A real trip is one where the idea of working doesn’t even cross your mind—because you’re focused entirely on survival. Every step matters, you’re figuring out where to eat, where to pitch your tent, and whether the stream or lake water is warm enough to bathe in—or if you’ll have to settle for dousing yourself with a bottle. A real trip begins where the internet ends, where meals for the whole family are cooked over a gas cooker in one pot, where you sleep as long as the kids do, and where you forget the world—except for the one right around you. A lot of people are afraid of real trips. They’re not used to being alone with themselves, carrying their life on their backs, relying solely on their own ability to take care of themselves. Many people pretend they’re going on a trip, but can’t resist the pull of wifi, checking in with friends, a warm bed, or a three-course meal. They’re terrified of disconnectin...
Post a Comment
Read more

Montreal:Taste of bagels and smell of cannabis

Construction, industry, detours and cannabis…these were the first impressions which this city gave me. Nothing impressive, nothing, which would touch my heart, nothing, why I would like to come back to this place. I kept wondering first hours how can I enjoy my so much wanted vacations when I was walking through noisy streets full of dust and trucks, upset, that I do not see any waterfalls, any mountain tops, rocks or sea. Flat piece of country covered by skyscrapers and old industrial buildings. Where was my dream about Canada? Where was the country covered by national parks, untouched nature full of wild animals? Instead of cathedrals we were reading a history of old industry in this city since the old factories were kept here as historical monuments. And I slowly started to find my way how to enjoy this stay. There was so little to impress me, but in the middle of destruction, boredomness and factories were entangled pieces of art - hidden in the buildings without windows,...
Post a Comment
Read more

In love with multiday hikes - Sumava mountains

Another year passed and it is here again. The best part of the year. The nicest time we always spend together. Multiday hiking trip with kids. This year - Sumava in CR. It is not easy, maybe it is not for everybody, but it works like a magic.  Leaving behind all the daily duties, work tasks, computer, signal, restaurants, kids demands, unnecessary things. Putting yourself on a border of own powers. As well as kids. During the hike, you might not yet feel happy, as well as kids don't, but in the end, they jump around your neck, telling you that they love you. It is so simple. Just being together. Clean your mind, forget about everything. It is never that easy as when walking with super heavy backpack through the nature. You only focus on the weight of the backpack, next steps, views, hunger...I might repeat myself a bit, but I think it is worth to repeat yourself once a year about these things, which make me really truly happy. I love the forced minimalism which I can enjoy for some...
Post a Comment
Read more