It is a well-known fact that retirement planning is one of the most important investments in life. However, not everyone has the financial means to set aside enough money for retirement. This is where government grants come in, which can help reach the financial pinnacle. With the right plans and programs, you can easily save hundreds of euros per year.
There are several types of pension subsidies, including the state old-age pension, survivor’s pension, disability pension and Riester pension. These subsidies can help reduce expenses in old age and make life easier in retirement.
However, it’s important to know how to take advantage of the grants and plans and how to best tailor them to your individual needs. In this article, you’ll learn how to save hundreds of extra dollars and which pension subsidies best fit your needs.
In short, if you want to save extra money with your pension, you should read this article more closely!
Allowances for old-age pensions
Those who retire generally have to reckon with a decrease in their monthly income. Fortunately, however, there are some subsidies that retirees in Germany can apply for to help improve their financial situation.
- Housing subsidy: pensioners who have difficulty covering their housing costs can apply for a subsidy to help with their rent or mortgage payments.
- Basic income support: pensioners with a low income can apply for basic income support to supplement their pension.
- Exemption from broadcasting contributions: Pensioners who receive benefits from basic security or social assistance can be exempted from paying the broadcasting contribution.
- Care allowance: pensioners who have a higher need for support due to their physical condition or their partner’s need for care can apply for an allowance to cover their care costs.
It is important to note that applying for subsidies may vary from state to state. Retirees should therefore contact their local pension advice center to find out what subsidies are available to them.
Occupational disability pension: Ways to get additional coverage
A disability pension is an important part of coverage in the event that you can no longer work due to an illness or injury. Nevertheless, this pension is often not enough to cover all costs. Fortunately, however, there are various subsidies and options to improve financial security.
- Private occupational disability insurance: an occupational disability pension from the statutory pension scheme is often insufficient to maintain one’s standard of living. Private occupational disability insurance can provide additional protection here.
- Company pension plan: Many employers offer their employees the option of a company pension plan. Additional insurance policies such as occupational disability insurance can also be taken out in this case.
- Subsidies from the state: there are various subsidies and support from the state to facilitate the financing of occupational disability insurance. This includes the Wohn-Riester and the Riester pension, among others.
It is important to inform yourself well in advance and compare different offers in order to find the best possible coverage. A personal discussion with an independent advisor can also be very helpful here.
Riester pension: Subsidies that provide more money in old age
The Riester pension is a private pension plan that is particularly suitable for salaried employees and the self-employed. In this regard, the government can provide various subsidies to make saving for retirement more attractive. The amount of the allowance depends on how much the saver pays into the Riester pension him/herself.
One of the most important subsidies is the Riester basic allowance. This amounts to 175 euros per year since 2018. In addition, parents receive a further child allowance of 185 euros per year for each child eligible for child benefit. It can also be worthwhile for young professionals to invest in a Riester pension: They receive a one-time bonus of 200 euros for starting their career.
But that’s not all: additional subsidies can also be levied under certain conditions. This gives low-income earners an additional allowance to enable them to save more. There are also special subsidies for people with disabilities. In total, the Riester pension and subsidies can save several hundred euros a year for retirement.
- The Riester pension and government subsidies can save several hundred euros a year for old age.
- The subsidies include the Riester basic allowance, child allowance and career starter bonus.
- Low-income earners and people with disabilities can receive additional subsidies.
Provision for retirement age: company pension
The statutory pension alone is often not enough to provide financial security in old age. It is therefore important to make additional private provision for old age. This is where the company pension comes into play. This is offered by the employer and can help to provide a higher monthly payout at retirement age.
There are various forms of company pension, such as direct insurance or pension funds. The employer can pay certain contributions into a fund, or the employee can also make payments. These contributions are subsidized by the state and are therefore an attractive option for additional retirement provision.
Another advantage of the company pension is that it is protected against insolvency. In the event of a company going bankrupt, the contributions paid in are thus protected and will not be lost. Even if the employer no longer pays the contributions, the entitlement to the company pension remains in place.
- Extra money: The company pension often offers high subsidies from the employer or the state.
- Tax advantages: The contributions to the company pension can be declared in the tax return and thus reduce the taxable income.
- Flexibility: Depending on the agreement, contributions to the company pension can be adjusted or even suspended.
In summary, the company pension offers a lucrative option for old-age provision that can not only be financially rewarding, but is also insolvency-protected and flexible. Early consideration of this form of provision can therefore have a positive long-term effect on the financial situation in retirement age.
Wohn-Riester: Securing state subsidies for construction financing
When it comes to old-age provision, people often think of the statutory pension. But homeowners can also make financial provision for old age with the Wohn-Riester contract and secure government subsidies at the same time.
This is a construction financing that builds on the Riester pension. The state supports the contract with allowances and tax benefits. With Wohn-Riester, you can also finance your own four walls and thus save on rental costs in the long term.
In order to profit from the subsidies, however, some conditions must be fulfilled. For example, the house or apartment may not be rented out and certain minimum contributions must be paid in. The repayment of the loan must also begin before retirement.
- Wohn-Riester subsidies are an attractive offer for homeowners.
- Construction financing on a Riester basis offers long-term retirement planning.
- However, certain requirements must be met in order to benefit from government subsidies.
So if you are planning to finance construction and at the same time want to make provisions for your old age, you should consider the “Wohn-Riester” housing subsidy offer. A personal consultation with a financial expert can help to discuss the individual benefits and conditions.