Retirement planning

Reading time: 4 minutes

+++ Almost everyone faces a financial hole in old age +++

+++ There are various approaches to solving the problem +++

+++ TBO advises its customers fairly on a fee basis +++

Each of us suspects that we most likely cannot rely on the state in old age. The self-employed generally do not receive any benefits from the statutory pension insurance scheme and the employees are more likely to receive pension payments at the level of social assistance. Only civil servants are expected to expect higher payments and the chamber professions (architects, lawyers and doctors) are probably the only group in our society who can live quite well from the benefits of the pension fund – if the projections work.

Most of us therefore need to take action, as the GDV pension calculator shows (German language). but hardly anyone can say that they have planned their pension plans properly and are implementing them accordingly.

Why is that?

Most people associate pension schemes with insurance companies and their representatives. The insurance agent is one of the most unpopular professions in Germany and it doesn’t sound very tempting to have him sitting on the couch after work and to get a pension insurance pounded against horrendous commissions.
Interest is in the basement. This means that it is not easy to invest your money profitably today. There is no longer an attractive investment product with guaranteed interest and no risk of loss and the stock markets ensure that the savings are halved every few years. Many Germans have already had negative experiences. Whether it is the loss in the share portfolio or the low surrender value of the pension contract concluded years ago.
For most of us, the age is still at least mentally far away and therefore does not cause any concern. Buying a house, buying a new car or the upcoming vacation are much more attractive goals for the savings and the monthly liquidity surplus.Die meisten Menschen bringen Altersvorsorge mit Versicherungen und deren Vertreter in Verbindung. Der Versicherungsvertreter ist einer der unbeliebtesten Berufe in Deutschland und es klingt zunächst wenig verlockend, diesen nach Feierabend bei sich auf der Couch sitzen zu haben und sich gegen horrende Provisionen eine Rentenversicherung aufschwatzen zu lassen.

What do we recommend from TBO to our customers?

In our view, there are three ways to deal with the topic:

You trust in your life, invest in your health and, in the worst case, continue to work until the end of your life (at least partially). There may also be solutions such as an unconditional basic income before you retire. That would mean that you stay true to your line and simply continue to invest little or nothing in old-age provision and have no need for action.
You take care of your retirement savings / investments yourself. There is now a large number of easily understandable specialist literature and there are also plenty of options for obtaining information via the Internet. If you then come to the conclusion that the solution via an insurance product is the right solution for you, you can get it from us free of commission for a small handling fee.
You would like the support of an expert and can be advised by a bank advisor, insurance agent or insurance broker. In this context, we always advise you to insist on disclosure of all costs associated with the recommended product. We would be happy to check this disclosure for you and provide our assessment. Keep in mind that pension insurance often earns several thousand euros in just a few minutes of advice, which you pay with your contribution.Sie vertrauen auf Ihr Leben, investieren in Ihre Gesundheit und arbeiten im schlimmsten Fall bis zum Lebensende (zumindest teilweise) weiter. Eventuell gibt es bis zu Ihrem Rentenbeginn auch Lösungen wie das bedingungslose Grundeinkommen. Das würde bedeuten, dass Sie Ihrer Linie treu bleiben und einfach weiterhin nichts oder wenig in die Altersvorsorge investieren und keinen Handlungsbedarf haben.

If option 3 is the right path for you, we will be happy to advise you. We have decided to only offer commission-based advice on special customer requests. Instead, we would be happy to advise you for a one-off fee to find the right product for you and then arrange a commission-free tariff with which, depending on the amount of the contribution, you can save four or five digits compared to the normal tariff, which insurance agents and bank advisors offer you will offer.

If you also want detailed pension and financial planning, we also offer a fee-based solution. However, keep in mind that such planning uses completely unknown data (future price development, return to be achieved, life expectancy). So the result of the planning can only ever be a clue and it is likely that you cannot go enough.

You can find more information on this topic on our website at https://www.tbovm.de/en/adviceforafee

We look forward to your inquiry!