GermanPedia
Learn something new about Germany every day. We cover every aspect of life in Germany: insurance, tax, real estate, schooling, scams, etc.
Save today to cover your medical bills in old ageGerman health care system is one of the best in the world. However, the demographic change has hit it hard. Germany's medical expenditures are consistently increasing, and health insurance companies have no choice but to raise premiums. As of 2025, self-employed individuals pay 17.1% of their gross income as public health insurance premiums. Experts predict the premiums will be between 25% and 32% of your gross salary by 2050. For employees, their employer pays half of the insurance premium.
NOTE: If you include "long-term care" contributions (4.2%), the percentage rises to 21.3% (as of 2025). Suppose the long-term care contributions remain the same (they won't). You'll be paying between 29% and 36% of your gross income in health insurance. Does this mean you should switch to private health insurance? It's tough to answer. Yes, private health insurance is better prepared for the future. Private insurance has saved (344 billion euros) in their retirement funds. In comparison, public health insurance has nothing. However, this doesn't mean that private health insurance premiums won't increase. They will increase, but hopefully at a lower rate than the public's. So, regardless of whether you are in public health insurance or private, premiums increase inevitably. Thus, it's critical that you start saving for the medical costs today for your old age. Based on our projection, if you save at least 200€ per month for 30 years at a 5% return, your savings alone can cover the monthly health insurance premiums in old age for ten years. High earners (>80k gross per annum) usually save at least 200€ per month after switching to private health insurance. Experts recommend saving this money to cover the premiums in their old age. To build the savings, you can open a savings account* or start investing in broad market indices, such as MSCI World. You can open a free trading account with Scalable Capital* or Finanzen.net Zero*. We have written a detailed analysis of price development and the future outlook of private and public health insurance. You should read it to inform yourself and act early rather than later. Suppose you are confused about which health insurance is right for you. You are not alone. The German health system is complex, and we pay half of our salaries to the government for its good work. So, don't fret if you feel lost. There are professionals (health insurance brokers) who make a living helping you find the answers. You can book a free call with a health insurance expert we recommend to better understand the system.
Note: Those who are insured with a public health insurer other than TK should switch to TK to avoid paying higher premiums for the same services. Another attack before the electionsHave you ever wondered why there is a sudden increase in the attacks before elections? Someone rammed a car in a rally in Munich on Thursday, injuring around 36 people. As you may guess, the suspect is an immigrant. Other recent attacks: Please stay safe and alert to your surroundings. Internal affairs are not enough; Germany must prepare for global politicsTrump has demanded that NATO members raise their defense spending to 5% of their GDP. The current target for NATO members is to spend 2% of their GDP on defense. So, increasing it to 5% is a big jump for most NATO members. Regardless, most nations have agreed to increase defense spending, considering the current geopolitical situation. However, spending 5% of their GDP in the short term seems impossible for many nations. Here is what the US defense secretary (Pete Hegseth) said “We’re also here today to directly and unambiguously express that stark strategic realities prevent the United States of America from being primarily focused on the security of Europe,” Making the best out of the current situationFrom a purely investment perspective, increased defense spending will benefit the companies in the defense sector, making investing in this sector lucrative. You can open a free trading account with Scalable Capital* or Finanzen.net Zero*.
NOTE: This is not an investment advice. You should do your own research and consult a licensed professional before making investment decisions. A request 🙏Reviews mean everything for online platforms, and GermanPedia is no different. You can help us compete in Google search by leaving reviews on Google. These really (yes, really) help and are a vital part of Google's discovery and recommendation algorithms. So, if you find what we are doing helpful, please leave a simple star rating or a short review on Google. This will help more users discover GermanPedia.
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GermanPedia
Learn something new about Germany every day. We cover every aspect of life in Germany: insurance, tax, real estate, schooling, scams, etc.