25 or 50? How women of different ages make good sense

On 8 March is World Women’s Day – reason enough to take a closer look at the private pension of women in Germany. CosmosDirekt demonstrates how both young and mature women can best save.

The pension entitlements of Germans are sinking, the poverty of old people is rising. Especially women are affected today because they pay less because of part-time jobs or upbringing in the pension fund. In addition, with the increasing flexibility of everyday life, long-term planning is becoming increasingly difficult. Especially among young people, the financial situation can change more often, for example due to job changes or relocations. Accordingly, according to forsa’s flexibility study commissioned by CosmosDirekt, one in five 18- to 34-year-olds (20 percent) plans their finances only for a short time and a further 66 percent plans to do so in the medium term until the next major issue. 1 Silke Barth, prevention expert for CosmosDirekt, explains: “The younger generation often does not yet see the urgency to start long-term retirement provision. However, more mature women often realize late that their statutory pension for life in old age is not enough. “

Tips for younger women
When it comes to retirement: If you start early, it’s easier. “Even if the start of retirement still seems far away, especially young women should face the topic. For even small amounts can secure an attractive supplementary pension for old age in the long term, “says Silke Barth.

Use state subsidy: The Riester insurance is a good start for old-age provision for young women. The contributions are flexibly adaptable, the state subsidy is up to 154 euros per year. Up to the completion of the 25th year of life, there are also once upon conclusion of the contract 200 euros. Mothers are allowed to enjoy over 300 euros per child per year. 2

Engage employers: working women should take advantage of the possibility of a company pension scheme. Since 2002, every employee has a legal claim. The state promotes occupational pensions through tax benefits and often the employer also participates with a grant.

Choose investment mix: Especially young women should get their financial leeway. In addition to long-term pension policies, flexible retirement plans are therefore available in which the credit balance is available when needed. Also reserves for unexpected expenses may not be missing, for example on a money market account.

Providing care during maternity leave : Young mothers are recommended by Silke Barth to keep the provision contracts running during parental leave – even though the funds are often lower. Because a longer break makes itself clearly noticeable later.

Tips for mature women
Anyone who is a bit older and has not made much provision privately yet does not have to put his head in the sand. “Even in the second half of working life, something can be done for old-age provision,” says the expert. “The selection of suitable products is particularly important here – not all offers on the market are meaningful for mature women.”

Make a financial check: Especially for women with life and work experience is first a financial check makes sense: What benefits can be expected from the statutory pension and private contracts? What is the corresponding pension gap? For example, online pension advisors provide assistance here.

Find individual solutions: depending on the living situation and financial resources, state-subsidized products such as the Riester pension, the basic pension or the company pension scheme may be worthwhile with their tax advantages, even for older women. Private pension insurance is also an option. For example, to whom money from an inheritance is available can think about a single-premium pension insurance.

Note terms: Important for private pension insurance is that the term is at least 12 years. According to the so-called “12/62” rule, pension insurance policies that are held for at least 12 years and paid out at the earliest from the age of 62 are tax-deductible for disbursement.

Use salary increases: Salary increases offer a good reason for retirement. If you do not need the extra money for your daily life, you simply invest it in precaution. If you have not gotten used to the extra money, it is easier to do without.