Does participating in your Company Pensions Plan make Sense in Germany?
How do you recognize if participating in your company pension plan (bAV) is a good idea in your case, and what alternatives could mean for you.
Direct company pension plans invest in ETFs in name only! How can this be?
With bAV you it takes 10 - 20 years before you even start investing in ETFs,
as you first need to make up for the costs, and then only gradually.
bAV COST is key
Learn how high the upfront cost of a bAV are and how that impacts the investment by delaying the proper investment of your savings in ETFs.
BETTER PERFORMANCE
Learn what a disciplined portfolio selection process is, what the minimum expected return of a good stock portfolio is and if that is better than a guaranteed return of a bAV.
MORE PENSION
Find out how much your employer really contributes. And how much you loose in public pension. Learn how you can make your pension 3 - 4 times higher.
Company pension plans:
the main issues
In Germany, most employees are offered a direct company pension plan (‘Direktversicherung’ in German) by their employer. Is it a good deal for your? Learn how to assess if and how the key problems apply in your case:
- high upfront and ongoing fees
- very low expected returns
- lack of ability to transfer to another employer
- upfront tax benefits are offset by taxes in retirement
- the loss in public pension due to the diversion of contributions
Learn why the required guarantees and secure returns don't pay off
The investment market offers you two choices: bonds with a guaranteed but low nominal return and stocks with high but volatile returns.
Bonds make sense for short-term investors and those that really cannot deal with volatility. For a long-term investor they are actually risky.
Stocks are safe in the long-run. Learn why and to which extent.
This has a profound implication for your retirement planning, and whether you choose a bAV or an alternative or both.
If not a Company Pension Plan, then what?
Make sure you consider the different ways of saving for your retirement and in particular the role of the public pension, and your own home. These create a great safety net. The supplemental pension is needed though to cover your pension gap as they will not nearly be enough. We will show you how.
Meet your hosts
Dr. Chris Mulder
Dr. Chris worked at the International Monetary Fund and the World Bank. He advised clients with hundreds of billions in assets. As an avid investor with a great pension himself, he now wants to create clarity in the complex German pension system and help you too achieve the safety and comfort of a great retirement plan.
Sven Gehle
Sven worked for years for Deutsche Bank and other brokers and has a wide knowledge of the different financial topics. He consults and supports his clients with all questions from the first contact on.
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