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Self-employed and unemployment insurance

Can I pay into the system?

Toytown Germany > Discussion forum > Germany-wide > Finance
yoyo
As a freelancer, I do not pay into the unemployment insurance scheme here. However, I have read one post in another thread that freelancers do have an option to pay into it. Is this true? Anyone know the costs (percentage)?

If it is not true, are there any alternatives.
Anwalt
Set up your own retirement investments and pay into those regularly. You will have control over where your money is invested and can change your investment portfolio as you desire. For example, if you are younger, you can set-up a riskier, higher return portfolio. As you get older, you can change it to a less risk, more moderate return portfolio.

Because you don't have to, you shouldn't pay into the government system if your goal is to save for retirement. For one, their retruns aren't as high as in the open market (they invest the money very, very conservatively), and chances are you won't ever get back all that you put in.

If your goal is to chip into the system to pay for the current pensioners receiving their goverment money, go for it.
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