If you are employed in Germany, part of your monthly salary will be paid into the state's pension fund. When you retire, you will then be paid a state pension from this fund. However, state pensions are often not quite enough to maintain the life style you've enjoyed before retirement.
This is why starting to save early for your retirement can be one of the most important financial plans to make. For more information, speak to one of our advisers.
To protect your current life style and family in the long run, there are three basic pension levels to consider.
This is the minimum pension level and comprises of the state pension, various other pension funds and the Rürup pension scheme, which comes with special tax benefits for freelancers and the self-employed.
The second pension level comprises voluntary personal and occupational pension schemes, which are subsidised through the Retirement Savings Act and Retirement Income Act. Under these schemes, you are regularly paying into a pension fund and at the same time benefit from state subsidies. These schemes can also be extended to include your entire family.
The third pension level comprises of all of the pension funds that are not state-subsidised. These funds are of interest to people who prefer a more flexible approach to saving for their retirement than is possible under the voluntary occupational or the basic state pension scheme.
Saving for your retirement is really quite easy and should ideally be started as soon as possible, even if it's just small amounts, to gradually build up more substantial savings for your retirement. Retirement saving advice will always be tailored to your specific circumstances and is sure to be a big help. Why not give it a try?
We offer a range of retirement savings plans to meet a variety of individual needs. Why not talk to one of our advisers to get the balance of your retirement savings just right.
We all wish for a carefree life – in particular as we get older. Planning ahead and saving for your retirement will allow you to enjoy your retirement to the full.
Our pension schemes include a number of additional schemes not listed here. To find out more about them, please contact one of our advisers.
At present, state pensions are generally insufficient to allow retired people to continue to enjoy their previous life style.
There are three different types of pension schemes available in Germany: state pension schemes, voluntary occupational pension schemes and personal pension schemes. Personal pension schemes offer a wide number of different options for saving for your retirement.
In order to create a solid financial foundation for your retirement, it is generally recommended to save between five to ten percent of your gross salary. However, it is also possible to save smaller amounts. The most important thing really is to just put money aside regularly and to start saving as early as possible.
Anybody retiring after 2040 will have to pay tax for their entire pension (i.e. 100 percent). Until then, the amount liable for tax will be gradually increased.
Investing in property is a popular way of investing for retirement, especially when interest rates are low. However, it is important to have at least a little of your own capital to invest and to take a close look at both the property and related terms and conditions before investing in any property. Regardless of which option you are considering, it is always best to seek professional advice.