Gary Hohenstein, 73, lives a modest life in Meissen, a city near Dresden in eastern Germany. And while he’s happy to be there, he doesn’t think he could afford to retire in New York City, where he’s from originally.
Hohenstein worked nearly a dozen jobs across his career, and he said he put the maximum amount into his individual retirement savings. Hohenstein collects five retirement benefits, including over $1,000 monthly in Social Security, $600 monthly from a New York state pension, $291 monthly in a pension from working in a hospital, and about $250 monthly from two pensions working in the fire department and as an EMT in New York.
Hohenstein also said he will begin taking the required minimum distribution from his retirement plans, which include a 401(k) and a 457(b).
He retired at the age of 59 and has lived in Meissen for 14 years with his wife Corina. While many baby boomers are struggling to finance their retirements, Hohenstein is an example of an American who retired abroad to make his money stretch further.
Building a career with retirement benefits
Hohenstein was born in Elmhurst, Queens, and spent the majority of his career working various jobs across New York, Delaware, and Connecticut.
He worked in three factories, served as the engineering director at the Putnam Hospital Center, and was the health and safety director at SUNY Westchester Community College, among other jobs.
Hohenstein said the role at SUNY was helpful because he was a state employee, meaning he was in New York’s pension system. He contributed to a 457(b) retirement account, which is an employer-sponsored plan for some government employees or workers at certain tax-exempt organizations.
During this time, Hohenstein also got involved with the local fire department in Brewster, New York, and volunteered as an EMT in Carmel, New York, both of which provided him with a small retirement pension.
“I thought, ‘Maybe when I retire, I’ll have some decent retirement money in the bank,'” Hohenstein said, referring to the various retirement accounts he accrued over his decades of work.
Meanwhile, during his early career, he married his first wife, and they had three children. However, he and his wife divorced in the 1990s, and he said the legal fees damaged the wealth he built.
Looking to Germany for a new future
While working as a volunteer EMT in the 1990s, Hohenstein was called to the scene of a car crash. The victim, who was in stable condition, was a German citizen named Corina.
Hohenstein said he and Corina had great chemistry and got married shortly after meeting. He helped her get her green card, and she took up a job as a Park Ranger in Putnam County, New York.
Hohenstein and Corina worked various jobs across the 1990s and 2000s. However, following the Great Recession, Corina was let go from her job in 2009. At a crossroads, she considered pursuing a job in Germany.
Hohenstein was 59 at the time and told his boss he was retiring early and moving to Germany. He said his boss didn’t believe him, but he gave one-month notice and packed his things to move abroad.
When they arrived in Germany in 2010, Hohenstein said his only income was his $291 monthly pension from working at the Putnam Hospital Center. He had opted to take the pension at age 55 for a reduced monthly benefit.
Corina entered the Berufsschule, a German student training program, to become a medical office assistant. The program provided her with about $556 (€500) monthly, which they paired with Hohenstein’s savings as their income.
The two lived briefly with Corina’s parents in Meissen before finding an apartment. He said they’ve rented the same apartment for 13 years for about $611 (€550) a month.
In 2014, when Hohenstein turned 63, he began collecting his Social Security because he said they needed the money. The earliest age to collect Social Security is 62, and the benefit amount increases each year until a person’s full retirement age, which depends on their birth year.
After a few years, Corina completed the Berufsschule, and she took up a job in a medical office.
Living off retirement savings in Germany
In 2017, after four years of working at the medical office, Corina had a stroke.
While recovering in the hospital, she went into a coma, and the right side of her body became paralyzed, Hohenstein said. Today, she uses a wheelchair.
Corina’s job as a park ranger in New York qualified her for Social Security benefits. Following the stroke, she collected Social Security Disability Insurance and began receiving benefits at age 47. Her benefits come to about $1,200 monthly and are the largest monthly income the two receive. Corina also receives about $278 (€250) monthly from a German government pension.
They are able to live off of their retirement benefits, and he said their daily life in Meissen is quite calm, filled with gardening and enjoying German beer and cold cuts.
While he misses his children in the US, Hohenstein said he’s set on life in Meissen, as he doesn’t think he could afford New York City. And he said he would choose Germany if he had to decide between moving back to the US or staying in Europe.
Are you an American who moved abroad? Will you retire abroad or return to the US? This reporter wants to hear your story. Please reach out at jtowfighi@businessinsider.com