With the scores level at 2-2 after 90 minutes and extra-time unable to provide a winner, the semi-final went to spot-kicks and Pollersbeck's save from Redmond proved decisive.
Germany took the lead when Davie Selke powered a header home from Jeremy Toljan's cross, but Demarai Gray thumped in a volley to send the teams into half-time level.
England moved clear five minutes after the restart when Tammy Abraham turned a cross from Will Hughes – signed by Premier League side Watford last week – into the back of the net.
Felix Platte, a second-half replacement for the injured Selke, angled home a near-post header to restore parity and thought he had nodded in the winner with 12 minutes remaining, only to see the flag raised for offside.
There was nothing to separate the sides in regulation time, while Nadiem Amiri was unable to steer a cross from Toljan in the closing stages of the second added period into the net.
England goalkeeper Jordan Pickford was the first to make a save in the shoot-out when he kept out Yannick Gerhardt, but a tame effort from Abraham saw England's chance to open an advantage evaporate.
After Amiri found the corner with a powerful effort from Germany's fifth spot-kick, Pollersbeck blocked Redmond's effort to send Germany into the showpiece.