Planning for retirement

7 posts in this topic

Hi,

 

I have moved to Germany a couple of years ago and haven't had a great deal of thought about retirement in Germany. As a freelancer, I am not paying into the German system so, as someone who's turning now 38 I should probably think about what I will do in 30 yrs time. What are my options? I have been accumulating my savings (about 30% of my income) into the stock market, auxmoney.com, and a no-interest savings account. I have heard about privat rentenvorsorge (or privat rentenversicherung). Are these worth a look or should I just put the money into some sort of long term investment options instead?

 

Kind regards,

Paulo

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An option could be that you return to Portugal upon retirement where the Euro goes a bit further than Germany with better climate, food and wine as well.

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26 minutes ago, LukeSkywalker said:

An option could be that you return to Portugal upon retirement where the Euro goes a bit further than Germany with better climate, food and wine as well.

Not sure my German wife would appreciate that suggestion! :)

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saving and simply investing is always a good start. However, a pension assurance offers life-long payouts regardless of how long you'll live whereas accumulated capital will only reach as long as your pay-out plan allows. 

That is why setting up some pension plan can make a lot of sense - you'll protect yourself against the "risk" of longevity,  strange as it may sound to consider this a "risk".

 

As a self-employed you don't have many options to invest into the German public pension system (and many would doubt the sense of doing so probably). Which leaves you with two main options:

1 ) a RÜRUP pension plan that comes with some tax benefits on one hand but also works exactly like a public pension in so far that you cannot take out the capital again and also can't cash in when you reach retirement... you'll receive a monthly pension for the rest of your life instead.

2 ) or a private pension plan with no tax benefits, but full flexibility later with regards to accessing the invested capital

 

It might make sense to seek professional advice for your future investment and pension planning. Several advisors specialized in catering to Expats advertise here on Toytown, many of them have a track record that you can check and then select one.

 

Cheerio

 

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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1 hour ago, Paulo Matos said:

Not sure my German wife would appreciate that suggestion! :)

Go to Portugal more often on holiday, e.g. during October or February: she will turnaround ?. 

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6 hours ago, Paulo Matos said:

Hi,

 

I have moved to Germany a couple of years ago and haven't had a great deal of thought about retirement in Germany. As a freelancer, I am not paying into the German system so, as someone who's turning now 38 I should probably think about what I will do in 30 yrs time. What are my options? I have been accumulating my savings (about 30% of my income) into the stock market, auxmoney.com, and a no-interest savings account. I have heard about privat rentenvorsorge (or privat rentenversicherung). Are these worth a look or should I just put the money into some sort of long term investment options instead?

 

Kind regards,

Paulo

Heed Starshollow´s words, Paulo, and also consider what else is equally important. You can invest all you want and plan for retirement- but ( in case you haven´t ) also think about what can happen if you can´t afford to pay into  a pension plan because you have a terrible accident or are diagnosed with a horrible illness which may prevent you from actually working and being able to afford a pension plan. What then?

Whoever you contact - and Starshollow is a great address - a serious broker will talk through this scenario  with you before you or along with addressing this issue.

And I also hope you have private Haftpflichtversicherung/personal liability insurance. You may have it. If you don´t know what it is, you need to . It is cheap and essential. Really essential.

I am a professional independent insurance broker and authorised advertiser. Contact me.
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11 hours ago, john g. said:

Heed Starshollow´s words, Paulo, and also consider what else is equally important. You can invest all you want and plan for retirement- but ( in case you haven´t ) also think about what can happen if you can´t afford to pay into  a pension plan because you have a terrible accident or are diagnosed with a horrible illness which may prevent you from actually working and being able to afford a pension plan. What then?

Whoever you contact - and Starshollow is a great address - a serious broker will talk through this scenario  with you before you or along with addressing this issue.

And I also hope you have private Haftpflichtversicherung/personal liability insurance. You may have it. If you don´t know what it is, you need to . It is cheap and essential. Really essential.

I am a professional independent insurance broker and authorised advertiser. Contact me.

as always, very wise words from John Gunn! The correct process for investment advice and pension planning always has to be to check that the main risks in life a properly covered by those insurances that are truly important.
Once that is verified or taken care off, the actual investment advice process (including in many cases the setting up of dedicated pension plans) can start for real.

Cheerio

 

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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