What Happens If I Can’t Work Anymore?

First job, first wage and limitless possibilities ahead of you. Right now, you’re probably not thinking about what happens if illness or injury prevent you from working. But preparing early helps protect your future self and keep your options open.

Once you start earning your first wage, you quickly realise how much of your paycheck is taxed. Many of these taxes, such as mandatory health insurance, unemployment benefits and your state pension, pay into your future. For instance, if you become unemployed, you will receive around 60% of your previous net salary in benefits, provided you paid taxes for at least one year within the last five years. But while these contributions are designed to give you a safety net, how can you be sure they will be sufficient? We’ve collected some facts and figures to help your planning.

What could stop me from working?

Everybody wants to think that they will be fit and healthy forever. With a bit of luck, you will be able to work until you reach retirement, by which time you’ll hopefully have a good pension to keep you going and enough money to live comfortably. Unfortunately, it doesn’t always work out that way. In Germany, between 200,000 and 300,000 people become unable to work due to illness or injury each year.

The reasons for this are diverse. For people working in manual trades, accidents and physical injuries could prevent them from being able to perform their job for an extended period of time. But what many people don’t realise is that mental health conditions are actually the most common reason for extended sick leave. According to insurance analysts Morgen & Morgen, mental health conditions such as depression or burnout contribute to around 31% of all cases of occupational disability. So no matter your profession, it’s important to have a back-up plan.

Can I rely on support from the state?

Many people believe that the state will support you if you are no longer able to work. However, it is not quite as clear-cut as that, and there are a number of conditions you must first fulfill. Firstly, the state differentiates between ‘partially unable to work’ and ‘completely unable to work’. The first applies if you are unable to work more than six hours a day in any profession. You are classed as completely unable to work if you cannot work more than three hours per day in any profession. You also must have paid into the state insurance scheme for at least three years within the last five years, and have paid into the scheme for a total of at least five years.

Even if you do fulfill all criteria, the payments are not as high as you might think. The average payment for people completely unable to work was just €716 per month in 2017. This relatively small amount is unlikely to be sufficient for the majority of living situations.

Exceptions for career starters

There are a few special rules that apply to career starters. If, for example, you are injured at work or become ill due to your profession, you only need to have paid into the pension insurance scheme once to be eligible for occupational disability benefits. If an accident occurred in your free time, then you need to have paid in for at least one year.

Take matters into your own hands

Fortunately, you don’t have to rely on government support or personal savings alone to secure your future income. Two good options for additional protection are disability insurance and accident insurance. Disability insurance (also known as income protection insurance) pays out if illness or injury prevent you from working for an extended period of time. Accident insurance, on the other hand, pays for costs related to accidents that cause long-term physical injury.

Not sure which type of insurance is right for you? Read our comparison between disability insurance and accident insurance. To find out whether disability insurance makes sense for your current situation, read our guide.