The financial question: loan against pension

Should you save for retirement or just only pay off the house? That depends on how much risk you can tolerate.

The pensions for civil servants and employees will rest in future on two pillars. This will, on the one hand, the statutory pensions to be, and on the other hand, the private supply. The company pension plan has never played a role in the officials, and they will continue to lose the employees were important because most companies simply have no means to pay for occupational pensions, as in previous decades. What does that mean for young people? The mandatory retirement is compulsory on their design staff, whether civil servants or managers have no influence. You have to pay into the pension funds, and they must hope to get the age “fair” consideration.

This looks at private pensions completely different. Here, the private citizens have more freedom than they realize. Is what sober consideration of things so much a question, enter into an investment savings plan or insurance to have aged some money for a rainy day, but it is in this free program to the optimal use of the total monthly rate for apartment and provisions is available. The thoughts behind this concept will become apparent in the following example.

An engineer is 30 years old. He is married to a doctor, who is two years younger. The couple has two children who are four and two years old. The parents are both working and earning a year just under 100,000 euros. Of which remain after deduction of social security taxes left about 59,000 euros, so that the family can spend about 5000 euros per month. Parents have accumulated in recent years through inheritances and gifts about 50,000 euros. When asked whether home or rent, the young family varies. She is interested in though, for a home that will cost 350,000 euros and would save a rent of 1,200 euros, if the story is worth, the family cannot judge. You can also imagine to live in rented accommodation and to put the surplus into various savings pots at the moment.

This custom home would be, that is the crucial point of the considerations by the state pension, the second pillar of the pension scheme, but it must never be the cornerstone of retirement savings be because otherwise, it would collapse under the load. Retired free capital is necessary as the third pillar in order to get an appropriate way to make ends meet. Otherwise, there is the risk of having to Silver’s house in old age, and this is associated with high risks. Consequently, it is in the private pension plan, to consider how the roof can be placed over the head and the establishment of free funds under one roof.

In this consideration, two points are important. What is the monthly rate for residential and retirement planning, and how these payments are broken? First, it must be clarified how much money from the monthly net income (5,000 euros) to be diverted for housing and provisions, and then it comes to the question of how this amount will be invested in the next 40 years. If the funds are used for example in a combination of rent and savings contract? How much should the house cost if the amount flowing in full in a loan? Is there a reasonable mixture of residential and retirement?

In clarifying the question of how much money for housing and care is to be used, there are neither right nor wrong answers. That is and remains a matter of opinion. Conceivable, for example, 50 percent of net income, so that monthly 2,500 euros were available. Of this amount, 1,500 euros for the residential and 1,000 euros for the pension can be reserved. When about 20 to 25 percent of the 1,500 euros are deducted, the result will be the basic rent. The 1,200 euros per month permit – depending on the region and location – different objects. In Munich, 80 square meters are for that amount might get, and in Flensburg easily 150 square meters are conceivable for the same price.