The German state pension scheme (Gesetzliche Rentenversicherung) is the cornerstone of pension planning in Germany. It has however a major fault – demographically, the baby boom generation is now nearing retirement age and with a current low birth rate, an even smaller workforce is having to pay for this increasing number of pensioners.
The German government has realised that this will lead to lower pension levels and are actively encouraging its inhabitants towards private pension planning. They are doing this through a system of mostly tax subsidised, insurance based solutions:
- Multiple pension product solutions
- Significant tax and subsidy benefits
- Guaranteed return on investments available
- Large and secure providers
- All products regulated by the German authorities
What very few expats realise is that they are entitled to the tax benefits as long as they are working in Germany.
State Subsidised Schemes
Riester Rente:
- Contributions can be offset against tax
- Guaranteed lifelong pension
- Protected against unemployment and insolvency
- Funds-based products
- Contributions can be guaranteed
Private Pension Schemes – Your money in a safe place
There are a whole range of private fund-based pension schemes available in Germany that offer the security of the German financial market. They can be used in conjunction with the subsidised schemes and offer very flexible solutions leaving your retirement investments accessible.
Stop losing money that you are entitled to – talk to us today for a free consultation