The post is back: If you are already 27 years old and have paid into the German pension insurance for 5 years, you will receive pension information in the post every year. For many, the first notification is a real shock and it often leaves lasting traces. Will your old-age pension be sufficient?
Here many agree: no. In view of the current inflation, demographic change and the rapidly increasing prices in almost all areas of everyday life, a relaxed pension is in bad shape.
The letter provides information about the expected monthly pension (retirement at 67), taking into account the contributions paid in the past five calendar years. There is also information about the pension entitlement achieved so far and the monthly entitlement of the insured in the event of a full reduction in earning capacity.
In addition to information on possible pension adjustments, you will also find an appeal to deal with private old-age provision, since statutory pensions will rise less than wages in the future.
If you want to get your pension paid out later, you have to diligently collect pension points, also known as earnings points. Anyone who earns around 38,400 euros gross per year currently gets a pension point. This corresponds to the average German salary of 3200 euros gross per month. Anyone who pays into the pension fund at this level by the age of 45 will ultimately receive a pension of around 1,500 euros. Various factors such as poorly paid jobs, starting work later or being temporarily unemployed mean that the pension is lower.
As dramatic as the situation may seem to many, it is not hopeless. Even if the state pension is likely to be lower than hoped for, it is better than no pension at all. The notorious pension gap can be closed with private old-age provision.
There are many possibilities for this:
Finding out which of these is right for you is not always easy and may require a lot of time and energy. But there is also a more relaxed way!
For example with the test winner investify. The multiple award-winning robo-advisor works according to the latest scientific standards and manages your assets competently and reliably. According to your specifications, a broad basic investment is first put together from index funds, so-called ETFs (Exchange Traded Funds). In addition, you can choose from over 20 themed investments to invest your savings individually in topics that are close to your heart, that inspire you, or that you simply think are future-proof.
An example: You start a monthly savings plan of 300 euros. With an assumed return of an average of 7.5 percent per year, after only ten years you will have a balance of 52,998.51 euros, of which you only had to pay in 36,000 euros. Of course, flat rate withholding tax applies to the profit share.
If you expand the mind game to 45 years, the same conditions even result in a credit of a whopping 1,285,089.67 euros. Only 162,000 euros were paid in. Even after deducting the withholding tax and taking into account the loss of purchasing power with an average annual inflation of two percent, you can sleep much more peacefully in old age.
Everyone has a different lifestyle and therefore different expenses, so the 300 euros are of course not a fixed requirement. In order to determine the ideal monthly savings amount for you, you should determine your later financial needs and, based on this, your probable pension gap. You can get more information in this FOCUS Online article.