How to save for your retirement?
Finding the right pension plan in Germany can be a daunting task. We developed some principles to help you find the right way to save for your old age.
- Irrespective of your age, income, and occupation, you must build your retirement provision.
- You should have at least two different ways to save for your retirement. This is because one income source is not sufficient to support your lifestyle after retirement.
- You should have at least one type of pension insurance plan in Germany to save for your old age.
- Depending on your age, income, marital status, and occupation, you should have an ETF savings plan, real estate investment, or another pension plan.
Pension plans in Germany
State pension plan in Germany
The minimum pension level in 2030 under the statutory pension scheme will decrease to 43%. So, relying only on the statutory pension in old age is not wise. You must supplement your retirement savings in another way.
Private pension plans in Germany
- Several private insurers offer pension plans in Germany. However, we don't find any private pension plans worth considering.
- Investing in an ETF savings plan instead of a private pension makes more sense.
- You can open a free depot account with Scalable Capital* and start investing.
Riester pension in Germany
In the Riester pension plan, you enjoy state subsidies and tax benefits.
Here are the Riester pension benefits.
- 175 € basic allowance
- 300 € child allowance per child (born after 2008), 185 € child allowance per child (born before 2008)
- 200 € joining bonus for young professionals
- You can deduct up to 2100 € from taxes
Riester pension is attractive for "low earners" and "average earners with children."
You can compare the Riester pension offers on the comparison portal Check24*.
Rürup pension in Germany
- Rürup pension (basic pension) is a private pension subsidized by the state.
- The maximum tax-free amount you can contribute to Rürup pension insurance is 26,528 € as of 2023.
- Rürup pension makes sense when expecting a lump sum liable for taxation. You can take a Rürup pension plan by paying a one-off lump sum. It'll save you taxes while securing a lifelong pension.
- You can compare different Rürup plans on the comparison portals Check24*.
Company pension in Germany
- The company pension plan is for employees only.
- Every employer in Germany must contribute at least 15% to the employees' pension contributions on top.
- A company pension is worth it if your employer contributes more than 25% to the company pension plan.
Upcoming Events
Grüne Woche
It's the leading international trade fair for food, agriculture, and horticulture.
When: 19-28 Jan. 2024
Link: Grüne Woche
|
|
Berlin Fashion Week
Berlin stands for progressive (sub)cultural movements and trends that unite fashion, art, design as well as the club and music scene like no other metropolis. Berlin Fashion Week reflects these cross-connections.
When: 5-8 Feb. 2024
Link: Berlin Fashion Week
|
|
Tanztage Berlin
The 33rd edition of Tanztage Berlin returns with ten performances that examine the collective body as it hardens and softens, freezes and fights, weakens and regains strength, addressing the root causes of persistent symptoms and disorders.
When: 05-20 Jan. 2024
Link: Tanztage Berlin
|
German word of the day
Krankenversicherung
Health insurance
Everyone in Germany is legally obliged to have health insurance (Krankenversicherung). You can choose between private health insurance (Privat Krankenversicherung) and public health insurance (Gestezliche Krankenversicherung).
|
Freebies
Check out our shop to download freebies like rental contracts, checklists, books, etc. We created several free products to make settling in Germany easy for you.
|
|
Quick Links
Ask an expert
Important types of insurance you should have in Germany
Personal Finance
-
Free trading accounts
-
Tax Software
-
Free Checking account
NOTE: Investing involves the risk of loss
Fixed account for 12 months (Festgeld)
- Up to 2.7% interest.
- Check offers from different providers here*.
Tagesgeld account for 3 months
- Up to 2.8% interest.
- Check offers from different providers here*.
Personal loan
|
|
Disclaimer
The information provided here is based on our own experience and in-depth research. The content might be inaccurate. It should not be considered financial, insurance, tax, legal, or any kind of advice.
We are not certified brokers or consultants. Always do your research and contact certified professionals before making any decision. GermanPedia disclaims any and all liability for damages or losses arising from the use of this document.
We finance our extensive work via affiliate links. Thus, some or all of the links in the post might be affiliate links.
We get money if you click on such a link or conclude a contract with the provider without costing you a cent extra.
Investment involves risk of losing money.
All links marked with the "*" are affiliate links.
|
|