Sign in to follow this  
Followers 0

Pensions in Germany / Altersvorsorge

13 posts in this topic

Just had a phone call from my health insurance company asking if I want to have a pension / Altesvorsorge. The woman seemed to be saying that my employer will pay for it. Does anyone know any more about this?

0

Share this post


Link to post
Share on other sites

This is one issue I am investigating right now, as my company has just started arranging for contributed pensions etc...

 

My main issue is I dont know where I am going to be when I get of the age to draw my pension, the thought of claiming bits of pensions from each of the countries I might live in is a bit of a scary thought.

 

I am going to talk to the company organising our company scheme the options for european people...

 

I will post some feed back or info when I get it

 

P

0

Share this post


Link to post
Share on other sites

There are 3 things:

1. there's your normal Stattliche Rentenversicherung. You are already paying that because it's compulsory.

2. Then there's Private Altersrente / Rentenversicherung. You can start up such a scheme any time you like.

3. Then there's Betriebliche Altervorsorge which is something that the company may or may not offer. I think it is similar to Krankenversicherung in that you pay X and your employer matches it with X.

 

It is by no means a given that your employer will offer number 3. Mine doesn't for example, so I am in the process of setting up myself a 2. I think whatever the choice, the employer deducts it from your salary and pays it.

 

As usual in Germany, the whole thing is very complicated, choosing the wrong plan (within 2 or 3) could affect your mobility (i.e. the company you move to might not offer the plan you have). So depending on your profile there is probably a scheme that is right for you, but finding it without and adviser would be painful.

0

Share this post


Link to post
Share on other sites

I'm expecting an advisor to call me back to either talk about it or make an appointment to talk about it. I just wanted to get a heads-up on what it was all about before I go to see him/her.

If I get any info that could be useful to everyone else, I'll post it here...

0

Share this post


Link to post
Share on other sites

As a head-start look up info on "Riesterrente". There are mixed feelings about this. Seems great if you have kids, but as a single, well... I don't have it. But you get a tax reduction on what you pay in. Also she might want to sell you life insurance too and have it related to a fonds package. Or she might mention "Vermögenswirksameleistung" which your employer pays into a stadt regulation fund which you cannot draw on until after 7 years or so.

 

My company pays into a life-insurance for me, but I can only get a hold of it when I've been in the company at least 10 years (ha, fat chance).

 

Between liability, disability (which everyone should get & when they're healthy) and household insurances I think I pay enough, plus I pay into "my own" retirement fund!

0

Share this post


Link to post
Share on other sites

Malc,

 

Betriebliche Altervorsorge as MysteryMan can be offered by the company - but will be tied probably to a minimum of seven years paying in before you qualify for anything.

 

Elf is right on the Vermögenswirksameleistung - my boss looked into this for me. Simply not worth it because the money is usually put inot a Bausparvertrag and tied up for at least seven years before you can do anything with it.

 

Riesterrente - Elf hit the nail on the head. It's not worth it unless you've got kids or you're on a very low income. If my memory serves me correctly you've got to be paying in for seven years before you have any chance of claiming anything.

0

Share this post


Link to post
Share on other sites

I already have a Bausparvertrag that I paid into for 4 years with the previous company I worked for. The company contributed half, I think.

 

Maybe it's worth looking into whether or not I can transfer it to the new company.

0

Share this post


Link to post
Share on other sites

Has anyone looked into a completely private international pension scheme.

 

I'm a freelancer and have to organise something. I think there are systems where you pay in an amount every month until you retire, does not matter how much you earn you just pay the chosen amount, and then get a pension or payback on that depending on how much you put in.

 

If I understand the pension crisis, governments are trying to ween people off the "your grandchildren's contribution pays your pension" schemes, and onto the above ?

 

It would certainly solve the problem of how long you stay in any one company or even country.

0

Share this post


Link to post
Share on other sites

MadAxeMurderer,

I'm looking into this one myself. But as yet I haven't found anything that really does apply regardless of country. I think I'm going to have to get a professional on the case.

0

Share this post


Link to post
Share on other sites

See the new law about "Anspruch auf betriebliche Altersversorgung durch Entgeltumwandlung" whereby any employee can demand of the employer to have part of the salary paid into a pension scheme, which has tax advantages (the snafu is that the employer can choose the type of scheme and determine the type of investment).

 

Vermögenswirksame leistungen are usually only applicable if you earn below a certain amount.

 

Personally I have a private pension in the UK into which you can continue to pay even if you are out of the country (but you lose the tax advantage if you have no UK earnings).

0

Share this post


Link to post
Share on other sites

more... still in german - this concerns the tax treatment of bAV

 

this post and my previous one should in no way be construed as tax or investment advice - seek professional advice before making any type of decision in this respect (Angaben ohne Gewähr)

 

cheers

J

 

post-6-1066824915_thumb.jpg

0

Share this post


Link to post
Share on other sites

I heard that with the Rieserrenter if you move to some other country in your old age then you forgoe on all the tax you ever saved due to it. Spanish guy working here told me this!

 

Worth checking out folks...

0

Share this post


Link to post
Share on other sites

Years ago my Steurberater told me to choose a pension company from a list of 6 English ones or find one myself. The montly payments would have been tax deductible.

 

Silly me did not, but I should ask him if he has recommendations now.

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0