German retirees turn to Portugal as pension gap widens at home

German retirees are increasingly looking to Portugal’s Algarve region for a lower cost of living. The area offers rents of €500‑€800 per month, total monthly expenses of €800‑€1,100 and a climate with over 300 sunny days, making a €1,000‑€1,200 German pension stretch further. The move is facilitated by EU rules that allow German state pensions to be paid abroad, though retirees must arrange the S1 health‑insurance form to join Portugal’s public health system.

A recent Bundestag analysis shows a stark disparity between the average statutory pension of €1,154 per month and the average public‑sector pension of €3,416. About 37 % of German retirees receive less than €900, while roughly 60 % of former civil servants earn at least €3,000. The report highlights the difficulty of comparing the two systems and fuels debate over pension reform and the “privilege” of civil‑service pensions.