If you want to be financially secure in old age then you cannot rely solely on the statutory pension. In the rarest of cases, this is sufficient to continue to live like when you were employed. If you don’t want to fall into old-age poverty, you should definitely make a private provision or retirement fund.

Take stock intended for retirement fund

In order to know whether the later retirement is good enough for life, there is no avoiding an inventory. It is important to find out how much pension you will probably receive from your compulsory insurance. This depends on the occupational group from the statutory pension or from the professional pension scheme. Take a look at your annual pension information and then estimate what is missing. This is the so-called pension gap.

Know the options for retirement planning

The overview of possible types of old-age provision is better if you assign the respective form of provision to certain categories.

It is important to stick for the long term and choose a fund that contains many stocks from different countries, industries and currencies. Then fluctuations on the stock exchanges tend to even out and the chance of a good positive annual return increases.

Those who invest money flexibly do not enjoy special tax advantages. For example, the saver pays contributions to ETFs from the net income that has already been taxed. He then has to tax interest or dividend income and subsequent sales proceeds again at the withholding tax rate.

Examine the individual pension options

Once you have an overview of common pension options, the hardest exercise comes. You have to make a decision. This decision is individual and depends on your life situation. However, a few questions can help in your decision-making.retirement fund

  • Which types of pensions can you choose? Not all forms are lockable for all professional groups.
  • Which form of the provision makes the most sense in your situation? Depending on your income and family situation, one or the other contract is more worthwhile.
  • What type of investor are you? Would you like a small but secure supplementary pension? Or do you want to take advantage of the opportunities on the stock market and are you ready to take a certain risk?

If you keep your investment such as stocks for the long term, the likelihood that they will generate profits increases.