Take out private insurance for your pension

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Private old-age provision has become very important. There are various options for taking out private insurance for later retirement. However, you should consider a few points in this context so that the private provision can be designed as optimally as possible.

Achieve an additional pension through private provision
Achieve an additional pension through private provision © Gerd_Altmann / Pixelio

These products can be used in the insurance sector

There are various financial products that are very suitable for building up a private pension. The later additional pension not necessarily only be built up by a specific product.

  • One of the classic products that are often used to build up a private pension is endowment life insurance. On the one hand, the customer can build up assets here, but on the other hand, he can also secure his family members financially. It is important to note, however, that this product is not suitable for Riester.
  • Another product that is also offered by insurance companies and is often used to build up private pension provision is the private one pension insurance. Although there is no protection for the family in the event of death, the yield is usually a little higher and the Riester subsidy can be included.
  • Both of the aforementioned products are available as classic and also as unit-linked versions. With the classic variant, a minimum return and the repayment of the capital are guaranteed, with the unit-linked variant, however, not.

Pay attention to the state subsidies for pensions

Building a private retirement provision, be it through one insurance or through another pension product, is in many cases also subsidized by the state.

Riester pension - definition

The Riester pension is, by definition, a private provision that is ...

  • Employees can often do the Riester pension benefit by receiving a basic allowance from the state as support. The promotion is particularly attractive for savers with children, because then there is also the basic allowance A child allowance is also added, which can amount to up to 300 euros per year, depending on the child's date of birth can.
  • The self-employed can also be subsidized by the state in building up private provision through tax breaks. These are available as part of the so-called Rürup pension, which both self-employed and freelancers can use.
  • With all forms of private old-age provision, it is important that the later monthly payment can ideally close the pension gap that exists in old age. The pension gap is basically the difference between the last earned income and the payment from the statutory pension fund.

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