Lisa Neumann University

Signpost retirement plays an important role through the insurance maze for many people, because no one can say with certainty how the economy and the pension system in Germany will develop. Financial test compared the main age pension offers in a study reported the results of the financial portal The inflation rate in Germany the average is 2 percent per year. This value could be observed in the last decade and corresponds to the objective of the European Central Bank. Investors should therefore generally deduct these 2 per cent of the rate of investment, realistically to estimate how much income brings a cash investment. The 2 percent usual for passbooks avoid a loss of interest therefore at best.

According to the test result, the best kind of interest for workers with annual incomes of up to 45,000 euros is a company pension. Advantage: no social security contributions accounted for the payments. The inflation rate dampens the income though, but usually an attractive choice plus. Retirees in turn benefit from rising wages. If wages increase, also the pensions increase? However, here there are two brake”in the statutory pensions: the sustainability factor attenuates the pension increase if there are more retirees than workers. And the Riester factor subtracts from the gross wage increase the theoretical effort for the private Riester-rente.

Because currently in Germany the wages fall more, an increase of the pension is not to refrain for the time being. Younger people should pay particular attention to the inflation-adjusted value of their retirement savings. Who relies on the annual report on the State of the pension, not involving unpredictable factors such as a political intervention in the pension system. More information about the pension insurance: rentenversicherung.