Retiree Finds German Living Costs More Affordable Than US

Gary Hohenstein, 73, enjoys a modest life in Meissen, a town near Dresden in eastern Germany. While content with his current situation, he believes he couldn't afford to retire in his native New York City.

Hohenstein's career spanned numerous jobs, with meticulous retirement planning. He receives five pensions, including over £800 per month in Social Security, £480 from a New York state pension, £230 from a hospital pension, and around £200 from two fire department and EMT pensions.

Hohenstein also plans to start drawing the minimum required distribution from his retirement savings, which include a 401(k) and a 457(b).

He retired at 59 and has lived in Meissen with his wife Corina for 14 years. While many baby boomers struggle financially in retirement, Hohenstein is a prime example of an American who sought out a more affordable lifestyle abroad.

Building a Career with Retirement Benefits

Born in Elmhurst, Queens, Hohenstein spent most of his career working across New York, Delaware, and Connecticut. He held diverse positions, including roles in three factories, engineering director at Putnam Hospital Center, and health and safety director at SUNY Westchester Community College.

His role at SUNY was particularly beneficial as a state employee, granting him access to New York's pension system. He also contributed to a 457(b) retirement account, designed for certain government employees and tax-exempt organisations.

During this time, Hohenstein volunteered with the Brewster Fire Department and as an EMT in Carmel, New York, both of which offered modest retirement pensions.

"I thought, 'Maybe when I retire, I'll have some decent retirement money in the bank,'" Hohenstein reflected on his decades of diligently saving.

However, a divorce in the 1990s resulted in legal fees that impacted his accumulated wealth.

Finding a New Future in Germany

While working as a volunteer EMT in the 1990s, Hohenstein responded to a car accident involving a German citizen named Corina. He and Corina developed a strong connection, eventually marrying. He helped her obtain a green card, and she worked as a park ranger in Putnam County, New York.

Throughout the 1990s and 2000s, the couple continued working various jobs. However, following the Great Recession, Corina lost her job in 2009, leading them to contemplate a move to Germany.

Hohenstein, 59 at the time, informed his boss he was retiring early and relocating to Germany. Though initially met with disbelief, he provided a one-month notice and packed his belongings for a new life abroad.

Upon arriving in Germany in 2010, Hohenstein's sole income was his £230 monthly pension from Putnam Hospital Center. He had opted for an earlier pension at 55, resulting in a reduced benefit.

Corina enrolled in the Berufsschule, a German vocational training programme, to become a medical office assistant. The programme provided her with approximately €500 (£440) per month, which, combined with Hohenstein's savings, served as their income.

The couple initially stayed with Corina's parents in Meissen before securing an apartment. They have rented the same apartment for 13 years at around €550 (£480) per month.

In 2014, upon reaching 63, Hohenstein began receiving his Social Security benefits as the couple's income was insufficient. The earliest age to collect Social Security is 62, with benefits increasing annually until a person's full retirement age, determined by their birth year.

After completing the Berufsschule, Corina secured a job in a medical office.

Living Off Retirement Savings in Germany

In 2017, after four years in her new role, Corina suffered a stroke.

Hohenstein explained that during her hospitalisation, Corina fell into a coma, resulting in paralysis on her right side. She now uses a wheelchair.

As her past work as a park ranger in New York qualified her for Social Security benefits, Corina began receiving Social Security Disability Insurance at age 47. Her monthly benefit of around £1,000 is their largest income source. Corina also receives approximately €250 (£220) monthly from a German government pension.

Hohenstein asserts they can comfortably live off their retirement benefits. Their daily life in Meissen is peaceful, filled with gardening, enjoying German beer, and cold cuts.

Although he misses his children in the US, Hohenstein is content with life in Meissen, believing he couldn't afford to live in New York City. When asked to choose between returning to the US or staying in Europe, he unequivocally chooses Germany.

*Have you moved abroad as an American? Will you retire abroad or return to the US? This reporter is interested in hearing your story. Please contact jtowfighi@businessinsider.com