"Reaching retirement at the age of 60 is usually a difficult goal"
In a recent statement, Hermann Schrögenauer, board member of LV 1871, highlighted the importance of private pension solutions for securing financial independence in retirement.
According to Schrögenauer, independent intermediaries who offer comprehensive pension advice are readily available to private customers. These advisors can help alleviate customer fears about investment topics, providing guidance on the complex world of private provision.
Private pension insurance solutions offer tax advantages primarily through tax relief on contributions, allowing your money to grow with deferred taxation. This tax relief accelerates fund growth since taxes are deferred until withdrawal, usually at retirement when income might be lower.
Moreover, these insurance solutions blend the investment aspect with insurance features, like guaranteed income streams for life. This integration enables retirees to receive steady, predictable income while benefiting from the growth potential of invested contributions.
Fondsgebundene Rentenversicherungen, a type of private pension insurance, offer higher return opportunities than conservative investments. They also guarantee a lifelong pension from an individually determined point in time, providing security for retirees.
Insurance solutions offered by LV 1871 can help individuals achieve their desired retirement age, given early savings. Early savers can determine their own retirement age, as Schrögenauer emphasized.
In Germany, a survey by Civey on behalf of LV 1871 shows that many people plan to retire before 69. However, Schrögenauer comments that retiring at 60 without private provision is unlikely in current circumstances.
The statutory pension insurance system in Germany may face significant challenges due to a demographic shift. In this context, private provision becomes a necessary means for many to achieve financial independence in retirement.
Upon retirement, only the income portion of the monthly pension is taxed, with the taxed amount depending on the retirement age. Retirees can benefit from lower taxes due to the taxation structure of the pension system in Germany.
Schrögenauer also encourages insurance brokers to sensitize their customers for sustainable and long-term financial planning. Flexible reallocation of assets is usually possible during the savings phase in Fondsgebundene Rentenversicherungen, offering investors more security depending on the chosen contribution guarantee.
The "Joint Diagnosis #1-2021" by leading economic institutes recommends raising the retirement age to 69 years. However, with the right private pension insurance solutions, individuals can take control of their retirement planning and determine their own retirement age.
In summary, private pension insurance solutions incentivize retirement savings through upfront tax advantages, grow assets tax-deferred by investing those savings, and provide insurance-backed guarantees like lifetime income. These features support retirees in achieving financial security and independence.
Personal finance is crucial for securing financial independence in retirement, and LV 1871's wealth-management advisors can help private customers navigate complex personal-finance issues related to private pension solutions. These advisors can guide customers in making informed decisions about the investment aspects of private pension insurance, which offer tax advantages through tax relief on contributions and deferred taxation, ensuring consistent and steady wealth-management for retirees.
