1. For further information Aravind@017620018701
Private Pension for 35yrs old, Retirement year 2051
Public Pension offers 2000€ for a current contribution of 1000€ per month. This number is going lower and
lower year by year due to the less number of contributors to Public Pension due to reduced workforce.
All foreigners coming to Germany are not bound to stay here. Half of them might be going back, meaning they
would take away their contribution from the public pension.
So for the people planning to stay longer here and retire here the monthly Public pension would be much
less than the current monthly salary.
Hence it is very important to fill this gap with Private Pension, the same is recommended by the state when
you receive your yearly Pension information.
Your contribution into Private pension is invested as per your wish for yourself and hence the returns are
much higher.
Below are some benefits of the Private Pension.
After you have enough capital sum in your private pension account, you have the flexibility to even invest in
mutual funds either on your own or have it managed automatically. Hence this is a very feasible option for
people looking to invest in the future.
One can consider the 0% as what you would approximately receive in Public pension.
Private pension takes 5% of your monthly investment and this 5% is invested in the most preferred funds so
as to give you the best possible returns. Hence with private pension returns from 3% to 6% can be expected.
Taking this risk of 5% on your investment is alright as investing the same amount again in Public pension or
any similar savings account will not yield anything better than the current public pension.
2. For further information Aravind@017620018701
Below are some possible returns for monthly investment of 100€ to 300€. Payments need to be done only
for 32years.
1. 100€ per month for 32 years (Investment: 55,334€)
2. 200€ per month for 32 years (Investment: 110,668€)
3. 300€ per month for 32 years (Investment: 166,002€)
The investment for 32 years is calculated with an increment of 2% each year so that the inflation is considered.
This means If you start with a plan of 200€ in the first year, 2nd
year you would be paying 204€ per month and
208€ per month in the 3rd
year and so on.
