How to build retirement savings as an expat in Europe (2026)

Key takeaways

Building retirement savings as an expat in Europe involves navigating multiple pension systems, understanding which country's state pension you qualify for, and deciding how to supplement with private savings. Moving between countries can create gaps in your pension record, but EU regulations allow you to combine pension rights across member states. The earlier you start filling in the gaps, the more options you have. This guide covers state pension systems, occupational pensions, private pension plans, and investment-based retirement strategies for expats across Europe.

Last verified: 2026-03-24.

The three pillars of European retirement

Most European countries use a three-pillar pension model, though the specifics vary significantly from country to country.

The first pillar is the state pension. This is a government-provided pension funded through taxes and social security contributions. In most EU countries, you build up state pension rights based on the number of years you work and contribute in that country. The amount you receive depends on your contribution history and the specific country's rules.

The second pillar is the occupational or employer pension. Many European employers offer pension schemes as part of the employment package. In some countries like the Netherlands, this is quasi-mandatory for most employees. In others, it is voluntary or less common.

The third pillar is private pension savings. This includes individual retirement accounts, private pension plans, and personal investments earmarked for retirement. Tax incentives for third-pillar savings vary widely between countries.

State pensions for expats: the EU coordination rules

If you have worked in multiple EU or EEA countries, you do not lose your state pension rights when you move. EU Regulation 883/2004 coordinates social security systems across member states. The key principles are as follows.

Each country where you have worked and paid social contributions will calculate a pension based on the time you spent there. You apply for your pension in the country where you currently live (or last worked), and that country coordinates with all other countries where you have pension rights. Your total pension is the sum of the individual pensions from each country.

Minimum qualifying periods apply in many countries. For example, in the Netherlands, you build up 2% of the full AOW state pension for each year you live or work there (50 years for a full pension). In Germany, the minimum qualifying period for the Grundrente is five years. Periods worked in other EU countries can count towards meeting these minimums.

State pension examples by country

Country	State pension name	Full pension after	Retirement age (2026)	Key feature
Netherlands	AOW	50 years of residency	67	Residence-based, 2% per year
Germany	Gesetzliche Rente	45 years of contributions	67 (gradually rising)	Earnings-based point system
France	Retraite de base	Varies (166-172 quarters)	64	Quarter-based, complex calculation
Spain	Pension contributiva	37 years	66.5 (rising to 67)	Based on last 25 years of contributions
Italy	Pensione di vecchiaia	42 years 10 months (men)	67	Contribution-based since 1996
Sweden	Allmän pension	No fixed period	Flexible from 63	Income pension + premium pension
Portugal	Pensao de velhice	40 years	66 years 4 months	Based on lifetime average earnings

The expat pension gap

Moving between countries often means you do not build up a full state pension in any single country. If you work 10 years in the Netherlands, 8 years in Germany, and 12 years in Portugal, you will receive partial pensions from all three countries, but each will be lower than what a lifelong resident would receive.

This pension gap is one of the biggest financial risks for mobile expats. To illustrate: 10 years of AOW contributions in the Netherlands gives you 20% of the full state pension, which was approximately EUR 280 per month for a single person in 2025. A full AOW pension was approximately EUR 1,400 per month. The difference is substantial.

The practical solution is to supplement your state pension entitlements with private retirement savings. The earlier you start, the more compounding works in your favour.

Occupational pensions across Europe

Netherlands

Dutch employer pensions are among the most developed in Europe. Most employees are automatically enrolled in an industry or company pension fund. Contributions are shared between employer and employee, and the Dutch pension system has accumulated some of the largest pension assets globally relative to GDP. When you leave the Netherlands, your accrued pension rights remain and are paid out from retirement age.

Germany

German occupational pensions (betriebliche Altersvorsorge or bAV) are available through employer schemes. Employees have a legal right to salary sacrifice into a pension scheme (Entgeltumwandlung). Contributions are tax-advantaged up to certain limits. The most common vehicles are Direktversicherung, Pensionskasse, and Pensionsfonds.

Sweden

Swedish occupational pensions are collectively agreed in most sectors. The premium pension component of the Swedish state system allows you to choose investment funds for a portion of your contributions. Sweden's system is notable for its transparency and investment choice within the state framework.

Private pension and investment options

Beyond state and occupational pensions, expats can build retirement savings through private pension plans and investment accounts. The tax treatment varies significantly by country.

Tax-advantaged pension accounts

Many European countries offer individual pension plans with tax deductions on contributions. In the Netherlands, this is the lijfrente (annuity). In Germany, the Riester-Rente (for employees) and Rurup-Rente (for self-employed) offer tax-deferred savings. In Ireland, Personal Retirement Savings Accounts (PRSAs) provide flexible, portable pension savings.

The challenge for expats is that tax benefits are typically country-specific. A Riester pension only provides tax benefits while you are a German tax resident. If you move to another country, contributions may no longer be deductible, and withdrawals may be taxed differently than planned.

Investment-based retirement savings

For many expats, the most portable and flexible approach to retirement savings is through investment accounts, particularly low-cost index funds or ETFs. While these do not offer the same tax advantages as dedicated pension products, they are fully portable across borders and give you complete control over your assets.

European brokers like DEGIRO, Interactive Brokers, and Trade Republic allow you to build diversified portfolios of globally diversified ETFs. A common approach is to regularly invest in a broad world equity ETF and gradually shift towards bonds as retirement approaches. For more on choosing a broker, see the Capmap investing comparison page.

PEPP: the pan-European pension product

The Pan-European Personal Pension Product (PEPP) was introduced by EU regulation in 2022 to create a portable, standardised personal pension product that works across EU member states. In theory, PEPP allows you to continue contributing to the same pension plan when you move between EU countries, with sub-accounts for each country to handle local tax rules.

In practice, PEPP adoption has been slow, and only a handful of providers offer it as of 2026. The concept is sound for mobile expats, but the product is still maturing. Check with your country's financial regulator for available PEPP providers.

Practical strategies for expat retirement planning

Track all your pension entitlements

Keep records of every country where you have worked and paid social contributions. Request pension statements from each country periodically. In the Netherlands, check mijnpensioenoverzicht.nl. In Germany, request your Renteninformation. Each country has its own system for checking your accrued pension rights.

Maximise employer pensions where available

If your current employer offers a pension scheme, contribute at least enough to capture any employer matching. This is effectively free money and provides an immediate return on your contributions. In the Netherlands, many employer pensions have generous employer contributions.

Build a portable investment portfolio

A diversified portfolio of ETFs in a standard investment account is the most portable retirement savings vehicle for expats. It moves with you regardless of which country you live in. Consider automating monthly contributions to make the habit consistent. For country-specific guidance, see our guide on how to start investing in the Netherlands as an expat.

Understand the tax implications of each move

Before relocating to a new country, check how your existing pension savings and investments will be taxed. Some countries tax pension withdrawals, others tax investment gains annually (like the Netherlands' Box 3 system), and others only tax on disposal. A cross-border tax advisor can help you structure your savings efficiently.

When to start

The most important factor in retirement savings is time. Compounding returns over 20 to 30 years can turn modest monthly contributions into significant savings. Even if you are unsure which country you will retire in, starting to save early through a combination of employer pensions and personal investments puts you in a much stronger position than waiting until your situation is settled.

This article is educational content, not financial advice. Always do your own research before making financial decisions. Fees and features may change - verify current details on the platform's official website. Last verified: 2026-03-24.

Disclaimer

This article is for educational purposes only and does not constitute financial, tax, or investment advice. Capmap.eu is an independent comparison platform — we do not provide personal recommendations. Always verify current fees, rates, and regulations with the provider or a qualified adviser before making financial decisions. Information was accurate at the time of writing but may have changed.