The statutory pension, funded through a pay-as-you-go system, is increasingly strained due to a declining ratio of contributors to retirees. As a result, the growth of statutory pensions is expected to lag behind wage increases. Employers are mandated to contribute to occupational pensions, which can reduce future social security benefits. Private pensions, including state-supported options like Riester and Rürup, offer individuals the flexibility to save from net income. The choice of pension products varies based on personal circumstances, emphasizing the need for tailored retirement planning as tax liabilities on pensions will gradually increase until 2040.