Have you noticed that a big part of your salary disappears into taxes and social security? What if you could use that "gross money" to build a pension – and your employer pays a part of it too? In my Remote consultation, I show you how to use the company pension (bAV) as a powerful tool for your savings.
Daniel's Story: Why saving from gross salary is a smart move
Daniel moved to Germany a few years ago to work as an engineer. He enjoys his job and the security it provides. But he realized that the state pension in Germany will not be enough to keep his current lifestyle when he gets older.
During lunch, his colleagues talked about a "direct insurance" (Direktversicherung) where the boss adds money. Daniel was skeptical: "Is it just another boring insurance with no profit?"
We looked at his situation together. Daniel learned that the company pension is a "turbo" for his savings. If he puts €100 from his gross salary into the pension, his net take-home pay only goes down by about €50. The other €50 comes from tax and social security savings. Plus, his employer adds at least 15% on top. Daniel says: "It's like getting a 50% discount on my retirement savings!"
More Net for your Future: How it works for Expats in Germany
The idea is simple: You use a part of your salary before taxes to save for retirement. Here is why it is so good:
- Tax Free: You don't pay income tax on the money you save.
- Social Security Savings: You also save on insurance costs like health and pension insurance.
- Free Money from Boss: By law, most employers must add a 15% subsidy to your savings.
- ETF Growth: We use modern plans that invest in ETFs for better returns.
ETF Power instead of zero interest
Forget the old pension plans of the past. Today, we use ETFs (Exchange Traded Funds). They are cheap, spread your risk across the world, and have the best long-term results.
You combine the massive tax savings of the bAV with the growth of the global stock market. Your plan is flexible – you can take it with you if you change your job or move.
bAV Advantage Calculator: More Net for Your Pension
See how much you save through taxes and the employer subsidy. You will see that a high contribution costs you much less than you think!
You effectively invest only 60 €, but 115 € arrive in your contract every month.
Requirements for Expats
- Valid German Address (Anmeldung)
- German Bank Account (IBAN)
- German Tax ID