Renten

Renten is the plural form of Rente in German, referring to income provided after leaving work or to annuity contracts. In common usage, Rente denotes a retirement pension; in finance, the term can also describe fixed periodic payments made over time, either for a set term or for life.

In German-speaking countries the pension system is often described as a three-pillar model. The first pillar is die gesetzliche Rente or the state pension, typically funded on a pay-as-you-go basis by current workers’ contributions and administered by the Deutsche Rentenversicherung. The second pillar is die betriebliche Altersvorsorge, or occupational pensions provided by employers. The third pillar comprises private products such as the Riester-Rente and the Rürup-Rente, and other private savings intended to supplement the state pension.

Entitlements to the statutory pension accrue from years of contributions and earnings, expressed in pension points (Entgeltpunkte) and converted into a monthly amount by a value that reflects current conditions. The standard retirement age has been gradually raised toward 67 for people born after 1964, with early retirement options often involving reductions. Pensions are periodically adjusted and may include survivor benefits for dependents.

Financing relies on a large demographic base; aging populations pose sustainability challenges. Policy reforms adjust rules on contributions, benefits, and eligibility to maintain adequacy and fiscal balance. The system aims to provide broad coverage while encouraging private savings and employer provisions to supplement the state pension.

Outside Germany, Rente also appears in private annuity products and financial planning contexts. The plural Renten thus covers both government pensions and private annuity contracts.