In Germany, 34% of foreign students stay until retirement
In Germany, around 34% of foreign students who begin their studies ultimately remain in the country until retirement age and work in skilled professions. This estimate is contained in a study by the German Economic Institute (IW), commissioned by the German Academic Exchange Service (DAAD), The Local Germany reports.
Researchers used data from the German microcensus to assess long-term outcomes for students from other countries after their arrival in Germany. The analysis covers students from both European Union member states and non-EU countries, and also takes into account their employment and living circumstances.
Contribution to public finances
For a group of nearly 82,000 foreign students who began degree programs in 2023, IW estimated the total lifetime contribution to value added at approximately €127 billion. According to the institute's calculations, the long-term public finance surplus will amount to €23.1 billion.
This estimate exceeds IW's central forecast in its 2025 study: at that time, a surplus of €15.5 billion was projected under a scenario of an average retention rate for foreign graduates. According to the new study, the taxes and social insurance contributions paid by foreign graduates exceed public spending on their education two years after completing their studies.
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Students' plans after graduation
IW researcher Professor Axel Plünnecke noted that foreign students may find it easier to integrate in Germany in the long term than migrants with higher education who come directly to work. During their studies, students have time to master the language, build professional contacts and a social circle, and gain a better understanding of German society.
A separate DAAD survey of around 21,000 foreign students showed that 35% of respondents definitely wanted to remain in Germany after completing their studies, while another 29% would probably like to do so. Only 8% of participants said they probably or definitely did not want to remain in the country.
The report also cites preliminary data from the Organisation for Economic Co-operation and Development: ten years after foreign students enrolled, Germany had the highest measured retention rate among the countries studied, slightly ahead of Canada.
